OpenCorp. is a fund manager that specialises in the development and syndication of residential, office and industrial projects throughout Australia. Through its property funds and joint ventures OpenCorp. endeavours to provide institutional investors, high net worth clients, self-managed super fund (SMSF) trustees and individuals with the opportunity to invest in the Australian property market.
In 2015, OpenCorp. was recognised as the sixth fastest growing business in Australia, and the fastest growing fund manager, for the four preceding years, according to BRW Magazine. This recognition is testament to the solid returns that OpenCorp. has delivered for its investors since its launch as a town house developer in 2006. Initially providing investments for friends and family the business has grown predominantly via word-of-mouth from its satisfied customer base. With more than 500 individual investors, whose participation ranges in value from $10,000 to $7.5m, the business’ current pipeline of projects currently exceeds 1,000 residential units nationally worth in excess of $500m.
OpenCorp is buoyant about the long-term prospects of Australia’s residential, office and industrial property markets which are underpinned by healthy population growth, international and domestic demand for our country’s resources and property assets, as well as effective fiscal and monetary governance. OpenCorp. seeks to create opportunities for property investors through the cautious selection of sites, due diligence, including the use of specialist consultants and the careful structuring of contracts and capital – all key elements in maximising the return on investment for clients, while maintaining a strong focus on risk mitigating and/or managing the associated risk.
OpenCorp. strives to achieve long-term success by having the right strategy in place to locate and assess investment opportunities. Before making any decision to invest, an acquisition committee utilises a combination of field assessments and significant in-house project financial feasibility modelling. Succeeding this, the risk-rated return projections must meet a set of prescribed criteria on all opportunities prior to presentation to the Board. The business has developed a strategic ‘playbook’ for negotiating, financing and developing land for residential, office and industrial purposes. This ‘playbook’ has been built around the experience of the Directors and is based on the premise that the underlying structure of the investment must be consistent with the goal of maximising returns and minimising risk for investors. In conjunction with consultants, OpenCorp’s project team conduct extensive financial modelling when selecting assets.
The primary focus is to acquire ‘off market’ opportunities – those which are accessed through the business’ strong networks and contacts across Australia and which generally present the most attractive investment opportunities. A secondary focus is ‘out of cycle’ (bottom of the market) properties and emerging markets.
OpenCorp’s management and project delivery teams conduct ongoing risk assessments to identify any risks that may impact future returns to investors. This process commences prior to entering a contract to purchase a property and continues until the project has been completed and profits returned to investors.
To maximise the chances of success, OpenCorp’s Directors oversee the acquisition process and make the final property acquisition decision. The role of the Directors is to review all feasibility documents provided by engineers and other consultants, rate the risk of the development project and ultimately decline or approve that project, often subject to certain conditions. Finally, the Directors will not commit to an acquisition until several of the Directors have visited the potential site and given their final approval.