Fife Capital is an independent alternative asset manager with a 50 year history of owning and operating assets. We have two primary business areas: Fund and Asset Management and Investment Advisory.
Fife Capital invests on behalf of institutions, retirement funds and private capital sources, and we are known for our strong focus on the management and value enhancement of our real estate investments.
Fife Capital is based in Sydney and operates throughout Australia and Asia, with a presence and relationships in Europe and the United States.
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Our Investment Partnerships
Fife Capital invests on behalf of and in partnership with, global institutions, superannuation funds, endowments and foundations, family offices and private clients. These partnerships and co-investment relationships have been built over many years and are the foundation of Fife Capital. These enduring relationships are also important sources of valuable information regarding markets and investment opportunities.
We hold both domestic and international investment instructions. Our Australian investment instructions are managed through Sydney and our regional investment instructions and capital flows are managed through Singapore.
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Investment Process
We invest across the four core real estate classes: retail, office, industrial and residential.
Defined strategies
We have defined strategies across each asset class. This is central to our investment approach. We only invest in line with our adopted asset strategies and only undertake investment deliberations where assets ostensibly conform with our strategies. This is critical to our risk management strategies as our asset class specific strategies, including our higher risk strategies, are supported by comprehensive market research and target market monitoring.
Distinct risk frames
We operate in four distinct risk frames: core, core plus, value add and opportunistic. We do not accept mandates or undertake investment outside these risk frames or unresearched asset classes.
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Investment Principles
We are an active, inventive and involved investor / manager
We are an active buyer and seller. When we are investing for total returns, we believe profits are only verified through effective divestment.
We are a cautious and measured investor. Our risk management approach includes diversification policies and a step in capability where appropriate.
We use financial structuring to enhance the returns of fundamentally viable transactions; not to instil life into unviable ones
We seek to align the interests of the management team with those of our fellow investors
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The Investment. York&George is a 22,900m² mixed use development project in the heart of the retail district of central Sydney comprising retail, commercial and residential. The development is an amalgamation of four properties acquired by Fife Capital in 2008-2009, discretely consolidating income producing properties. Planning approval was obtained for the project in 2013 and demolition of elements of the property commenced in May 2015. The project had a number of complexities, not the least being embracing the protection, restoration and adaptive re-use of the heritage buildings on the site. The project was completed in 2018 and on completion had 199 apartments totalling 15,200m², a podium of prestige retail exceeding 5,000m² and unique central city office accommodation in the heritage component of the project.
The Commerce. The total cost to consolidate the property was $67.85 million. This represented a price for the developable index of $2,963/m² which was assessed to be a significant discount to previous prevailing site pricing and this reflected the uncertainty in the market at the time.
Underlying the investment decision and the underwriting of the consolidation was the cost relative to historic pricing, the band of alternative uses available and the revenue flow from the existing properties.
The Plan. The depths of a global financial crisis is always going to be a defining environment for investment and those making it. In 2008, conventional funding lines were limited, sellers were anxious and the market was on edge. There were no signs of life in the real estate market. Courage and experience were required. The global economic dilemma combined with inevitable domestic noise, meant there were other mooted local projects in a holding pattern and uncertainty about the direction a recovery would take. Two scenarios were investigated and tested: a residential driven outcome and an office outcome. Both scenarios showed our investors an appropriate return. Recovery came first to the residential market.
The Execution. In November 2013, the residential component of the project was sold at a then record price for comparable projects. Subsequently a 75% stake in the office and retail component of the project was sold to a global real estate investor. The project has been highly awarded:
Urban Taskforce
- Development of the Year
Property Guru
- Best Mixed Use Development (Australia)
- Best Commercial Building Green (Australia)
- Best Mixed Use Development (Asia) Finalist
Urban Developer
- Best Mixed Use Development
Property Council
- Best Mixed Use Development (Finalist)
- Best Heritage Development (Finalist)
- Best Residential Development (Finalist)