Avalon Park Group (APG) is excited to announce our entry into the APAC market via a strategic investment into Sumner Capital, an Australian real estate investment manager. The partnership marks the addition of Sumner Capital into the APG family of companies and the joining of APG partner Ravi Kumar onto its Board of Directors.
The investment is a deepening of the fruitful and long-standing relationship between Sumner Capital and APG which began in 2013. Sumner Capital and APG jointly executed two real estate projects, namely Pier 8/9 Walsh Bay (2014) and 117 Harrington Street (2013) in Sydney which yielded an IRR of more than 30% respectively. These experiences were a demonstration of the robust synergies between Sumner Capital and APG, a marriage of global real estate expertise and deep local market knowledge that allowed the partnership to identify unique real estate opportunities. Together, the partnership has had a track record of turning around distressed, low-occupancy assets into high-occupancy assets with quality tenants through a detail-oriented, hands-on methodology.
“We like to say we should date before we marry. That’s what happened with Sumner Capital. We had instant chemistry. From an emphasis on creating long-term, sustainable value for investors, to an insistence on taking a hands-on, operationally-focused approach to build companies, it was uncanny how many values we shared,” said Ravi Kumar, partner at APG and newly-appointed Director at Sumner Capital.
Sumner Capital believes that the partnership comes at an opportune moment, having been deeply involved in the mature real estate market in Australia for more than a decade. More than 10 billion USD worth of office, industrial, hotel, and retail assets changed hands in H1 2022 in Australia, with office transactions accounting for the largest share at more than 4 billion USD. Australia is also a top destination for investors seeking to diversify their portfolios from Hong Kong, Singapore, the United States, and Germany, geographies that intersect well with APG’s existing network. APG’s exceptional reputation, sound business experience, and significant financial resources will allow Sumner Capital to bring new expertise and accelerate its growth.
“With this new chapter in Sumner Capital’s growth, we are looking to continue the strong returns that have been achieved. We are going to keep our signature hands-on, personal approach with clients while strengthening the reach and expertise we have at Sumner Capital,” added Kirby Parsonage, Principal at Sumner Capital.
Going forward, the partnership will allow Sumner Capital to grow its team of experts, increase deal-making activities and expand its investor base. APG will be bringing its network of investors to Australia and seeking to form partnerships with other asset and investment managers for strategic M&As. In addition, APG subsidiary nøught labs, a growth strategy firm, will be working closely with Sumner Capital to expand its digital footprint, incorporate new real estate technology, and adopt data-driven operations.