The $161 million raised in the offer will now be used to invest in a portfolio of Australian commercial property assets that provide risk-adjusted income and the potential for capital growth.
“With the spread between commercial property yields and cash rates rising to 10-year highs, we believe this is an attractive time for investors to generate stable rental income, and potentially longer-term capital gains, through an investment in commercial property,” Alex MacLachlan, chairman of the fund’s responsible entity said.
“The successful capital raising now puts the fund in an excellent position to engage with vendors of small- to medium-sized assets that meet our investment criteria.”
The fund plans to acquire small- to medium-sized assets in the office, retail and industrial sectors, predominantly located in major real estate markets on Australia’s eastern seaboard. It also intends to take advantage of low interest rates to gear its investment by up to 50 per cent.
Dixon Advisory Group and Fort Street Advisers will provide investment management services to the fund and the investment committee will be chaired by Stuart Nisbett, managing director and principal at Archerfield Capital Partners.
