Opportunity

m2space continuously searches and sifts through a myriad of development and investment opportunities. Our core focus is to identify intrinsic value based on our research, sourcing and negotiating skills, to secure deals that meet the following strict acquisition criteria:





LOCATION - sites are located in established, desirable & well serviced areas, within a 5km radius from a CBD (target - SE Queensland)

COMPETITIVE EDGE - absence of viable competition from similar sites or product in the immediate region (target - infill sites in gentrifying suburbs)

 

UPSIDE - short to medium term inherent value (target - DA approved sites, income producing or impaired assets with development/repositioning upside)  

 

PRICE - below market value (target - discounted quality assets, distressed sale, debt takeover, change of use assets)

 

FLEXIBILITY - able to accept terms or option to purchase (target - delayed settlement or negotiated profit share arrangement via a joint venture with landowner)

 

PERFORMANCE - must deliver minimum IRR target of 35% (Gross), minimum ROI target of 30%, minimum net profit margins of 25-28%

 

FUNDING - typical equity/debt ratio of 25/75 

 

RISK - asset-backed securities, multiple exit strategies, risk mitigation through value engineering (adding value by reducing cost), repositioning, refinancing debt 



​

​Methodology

​

We assess each opportunity on its own merit and according to its unique set of circumstances, prior to offering a deal to potential stakeholders. Our intimate knowledge and understanding of the micro and macro markets we operate in, gives us the advantage of evaluating more opportunities in less time. We filter down to a selected few and run several conceptual and funding scenarios, testing their feasibility against the above criteria. The larger the dollar gap between acquisition price and gross realisation value, the better the opportunity value (all else being equal), hence lower risk exposure, translating into above-market risk/return ratios.