Assembly Funds Management (AFM) aims to raise an additional A$100m (€60m) by October for its second Australian diversified property fund, bringing the fund size to A$215m.
The fund manager is targeting a final fund size of A$350m with a hard cap of A$500m for Assembly Diversified Property Fund 2 (ADPF2) which completed its first close at the end of 2023, raising more than A$115m.
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.
AFM has already deployed some 80% of ADPF1 and has delivered forecast gross returns “at the upper end of its mid-teens”. The manager is expected to fully deploy capital in ADPF1 by next June.
Michael Gutman, CEO said: “The investment strategy for the ADPF series has proven to be attractive to investors due to its ability to invest across sectors either in debt or equity. In particular, it provides the flexibility to weight towards the sectors where we see the greatest operational tailwinds.
“We would expect to see a rebalancing from debt to more equity transactions as the interest rate reduction cycle progresses, improving the risk-return profile for equity over debt.”
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