Australian boutique fund manager Assembly Funds Management (AFM) is seeking to raise A$350m (€209m) for its second diversified property fund,

The Assembly Diversified Property Fund 2 (ADPF2) – which aims to capitalise on value-add and special situations opportunities in residential, logistics and the alternatives sectors – is a follow-up fund to the A$350m ADPF1.

Close to 75% of ADPF1’s capital is invested in a mix of 15 assets in the residential, logistics and alternatives sectors with the remaining equity expected to be deployed over the next twelve months.

“It is anticipated that ADPF2 will have a higher proportion of value-add and distressed investments than ADPF1, given the market dislocation and more opportune timing of new investments,” said Michael Gutman, AFM’s CEO.

“In response to the highly unpredictable financial environment since launching ADPF1 in 2019, AFM has developed a fairly unique investment approach which targets a mix of credit and equity investments across sectors to derive its target return,” he said.

Industrial and residential sectors were still experiencing very tight vacancy markets nationally, and resultant strong rental growth was helping to offset potential capitalisation rate expansion in the short to -medium term, he said.

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