Fortius Funds: Efficient asset and fund modeling with centralised data

Fortius Funds is a privately owned Australian real estate investment management group established in 1991, with approximately $2B FUM primarily across the Australian Eastern Seaboard. Their core focus is managing real estate assets and portfolios for superannuation funds, offshore and onshore institutions, and high net worth and SMSF investors.

The Business Challenge: Integrating data into one place

Leveraging data is critical to developing accurate forecasts in asset and fund modeling. But disparate systems used to collect data has created inefficiencies in the business and Fortius wanted to improve the process by having a single source of actuals, forecast, valuation and fund data. To optimise strategic planning for their real estate investments, they needed a system to have actuals and budgets merge with long term forecasting and then flow to fund level reporting.

The Solution: System integration with asset and fund modeling

Fortius purchased the MRI Software Investment Modeling software in 2020 in order to create an integration between the Knight Frank PMX system and their investment forecasting. This allowed their fund managers, asset managers and analysts to further optimise asset performance through forecasting, transactional simulations and scenario testing, using a single repository for their asset and fund data.

Fortius chose MRI Software as it was the best choice given its history with similar property groups in the industry, as well as integration with Fortius’ property level accounts.

Impact across the business

MRI Investment Modeling provides ongoing reforecasting of property cash flows, valuations and distributions. This helps Fortius to save time and reduce errors by allowing them to import actual property accounts for the purpose of forecasting.

Peter Highlights: “MRI allows faster decision making on the impact of speculative major leasing proposals and the effect this has on the asset valuation and distribution forecasts. It also allows comparison between multiple lease scenarios against each other and tracks that impact versus the acquisition underwrite model.”

Asset and Fund modeling

With the asset modeling and fund modeling modules, Fortius is able to track asset and fund performance and compare back to budget assumptions, including its value, risk factors and constraint parameters. It also provides the ability to undertake detailed scenario analysis which is integral in rolling out their value-added strategies.

Valuations

MRI Investment Modeling allows faster decision making on the impact of speculative major leasing proposals and the effect this has on the asset’s valuation and distribution forecasts. Fortius is now able to compare multiple lease scenarios against each other and track that impact versus the acquisition underwrite model.

Peter notes: “MRI IM saves us time and reduces errors by allowing us to import our Actual Property Accounts easily for the purpose of forecasting.”