Altis Property Partners has secured A$600m (€389m) worth of capital commitments for real estate strategies in Australia.
The capital was raised from an existing investor and a newcomer – one is an Australian super fund and the other a European institution.
The equity is to be deployed on value-add, core-plus, and develop-to-core real estate with a focus on industrial, large format retail, and counter-cyclical office in Australia.
James King, director of investment management and capital at Altis, told IPE Real Assets the new equity would be channelled into the latest vehicle in the flagship value-add series, Altis Real Estate Equity Partnership 4 (AREEP) 4, and the newly-established Altis Industrial Fund (AIF) 1.
King explained that, historically, the firm had been focused on a value-add strategy through the AREEP fund series.
“In this case,” he said, “we have a significant client that wanted to just be in its own vehicle and specifically focussed on the industrial component, not other multi-sector focusses that the AREEP series has. That is why we have done it with two vehicles.”
King said AIF1 was focused on procuring a diversified portfolio of high-quality value-add, core-plus, and develop-to-core industrial assets across Australia.
The AREEP4 fund has acquired a A$31.5m industrial warehouse at Hazelmere in Perth. “We will renew the lease on the warehouse and build a new facility on the surplus land on site,” King said.
“This is an example of our value-add deal. We will also look at core-plus and develop-to-core and at greenfield and brownfield development opportunities.”
King said: “In a post-COVID, post-low-interest rate underwriting environment, ongoing re-pricing of the various real estate sectors provides great opportunity to procure A$1.2bn-plus of quality assets across Australia at attractive buy-in prices.”
Back in August, global investment manager Barings agreed to buy Australia-based real estate firm Altis for an undisclosed sum.
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