Sydney-based Investa Commercial Property Fund (ICPF) is preparing to launch a roadshow to raise A$500m (€308m) to finance new acquisitions and its development projects.
ICPF, which owns some of Australia’s best office buildings, predominantly in Sydney and Melbourne, will look to Asia, the UK, Europe and North America for fresh equity.
Although the planned raising will be launched next week, a number of global investors from Asia and Europe has already begun their due diligence.
Jason Leong, fund manager for ICPF, said: “There is good interest by institutional investors in ICPF particularly given its high-quality portfolio and strong investment performance.”
He said ICPF has outperformed its peer funds on the MSCI/Mercer Australia Core Wholesale Property Fund Index over 1, 2, 3 and 5 years, more recently delivering a net total return of 15% for the last financial year.
Leong told IPE Real Assets that interest from Asia, particularly Japan, was strong. Potential investors included insurance companies, pension and sovereign wealth funds. ICPF also brought in its first investor from Hong Kong in the last round of raising.
ICPF’s 56 existing investors, 80% of which are Australian institutions and superannuation funds, will have preemptive rights to subscribe to the capital raising.
Leong said the fund had a development pipeline and potential new development opportunities with an end value of in excess of A$1.5bn.