Sumner is excited to announce our partnership with Avalon Park Group (APG), which will become a strategic investor into Sumner. APG is a uniquely diversified family of companies engaged in businesses ranging from master-planned community development to technology, mining and property management in the United States and Switzerland with more than USD1.5 billion in total assets.
APG combines its exceptional reputation, sound business experience, and significant financial resources to invest in extraordinary opportunities.
The investment is a deepening of the fruitful and long-standing relationship between Sumner and APG which began in 2013. Sumner 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 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. 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 building companies, it was uncanny how many values we shared,” said Ravi Kumar, partner at APG and newly-appointed Director at Sumner.
Sumner 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 USD10 billion 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 USD4 billion. 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 to bring new expertise and accelerate its growth.
“With this new chapter in Sumner’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,” added Kirby Parsonage, Principal at Sumner.
Going forward, the partnership will allow Sumner to grow its team of experts, increase deal making activities and expand their investor base. APG will be bringing their network of investors to Australia and seeking to form partnerships with other asset and investments managers for strategic M&As. In addition, APG subsidiary nøught labs, a growth strategy firm, will be working closely with Sumner to expand its digital footprint, incorporate new real estate technology and adopt data-driven operations.