Boutique fund manager Exceed Capital has transacted more than $111 million across five commercial assets over the past four months and is close to finalising the purchase of two additional properties, as tightening supply and easing vacancies draw investors back into the market.
It has acquired four properties for a total of $92.141m on an average yield of 8.5%, including:
- 5 Discovery Court, Birtinya (QLD) (known as Vitality Village, a fully occupied 5-level mixed-use medical and office building with 6,636sq m of NLA on a 4,231sq m site) – $26.5m
- 7 Clunies Ross Court & 17-19 McKechnie Dr, Eight Mile Plains (QLD) (a 98% occupied three-level office building in Brisbane Technology Park with 8,409sq m of NLA on a 9,938sq m site with 316 car parks) – $45.8m
- 312 Bourbong Street, Bundaberg (QLD) (known as Bundaberg Community Health Centre, a fully occupied two-level building with 2,024sq m of NLA on a 2,023sq m site – $9.85m
- 330 Maitland Road, Mayfield, Newcastle (NSW) (A four-level office building with 2,044sq m of NLA on a 1,334sq m site) – $9.991m
Meanwhile, Exceed Capital has also sold its first asset, a retail centre at 137 George Street in Beenleigh, for $19.5m. The property, which is tenanted by Supercheap Auto, Petbarn, Jaycar, AutoBarn, F45 and Safe Places for Children, was purchased by the fund manager in 2017.
Exceed Capital Co-founders Vaughan Hayne and Justin Clarke, each with more than 35 years’ experience, said disciplined buying and active asset management remain central to the firm’s approach.
Mr Hayne said Exceed Capital was one of Queensland fastest-growing fund managers, evidenced by its strong acquisition activity.
“It’s been a busy period of raising capital and settling assets into the portfolio,” said Mr Hayne. “We’ve stayed patient, bought well, and focused on assets that can deliver sustainable, consistent cash returns with capital uplift.”
Mr Hayne added that construction cost inflation was constraining new supply while vacancy rates were trending lower, creating a supportive backdrop for income-focused strategies.
“Following the success of our Gold Coast assets, we’re confident the market is moving in the right direction,” he said. “Vacancies are dropping and new stock is harder to bring to market—conditions that reward careful underwriting and hands-on management.”
The off-market sale of Exceed’s first asset, in Beenleigh, was a disciplined exit where further value-add had largely been realised.
“We don’t sell many assets because they’re hard to replace, but in this case the time was right,” said Mr Clarke.
“Investors received 1.7x their initial capital along with a healthy cash return along the way. The majority are rolling back in with us—which tells you a lot about alignment and outcomes.”
Capital for recent deals has been raised through Exceeds open-ended fund, The Collective, which the firm says is designed to minimise risk through diversification while enabling swift execution when opportunities arise.
“The Collective gives us the ability to move quickly and precisely,” Clarke said. “That speed, combined with our sourcing network, is an unfair advantage in competitive processes.”
Founded and operated in Brisbane, Exceed Capital specialises in Australian commercial property with a track record of buying income-resilient assets and lifting performance through asset-level initiatives.
“We know what we’re looking for, and we’re relentless about operations,” Hayne said. “Our investors have been very supportive, and we thrive on improving the performance of properties.”
With two more acquisitions nearing completion, the fund managers say they are maintaining underwriting discipline.
“We’re active, but not indiscriminate,” Clarke said. “The goal is the same as always: dependable cash yields today and credible pathways to value growth tomorrow.”
Mr Clarke said while Exceed has purchased in various locations around Australia, many acquisitions had focused on Queensland because the state had strong growth prospects, including through population growth.
“Queensland and specifically South-East Queensland is one of the most expensive locations in Australia to build right now which is limiting new supply, so there is great value in existing assets,” he said.
“We are able to buy quality assets at large discounts to their current replacement cost. The limited supply and strong population and job growth in Queensland is also creating occupier demand and we are seeing good rental growth across our portfolio.”
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