Charter Hall Group has launched a new diversified wholesale fund in partnership with two Australian superannuation funds.

David Harrison, Charter Hall group CEO said the Deep Value Property Fund (DVP) has been seeded with assets totalling AUD113m (€71m).

These assets included a 50.5% interest in the Queen Street Mall asset known as No. 1 Brisbane, which the group acquired last September for AUD94m.

Harrison said DVP had a total additional capacity of AUD500m, and that the fund was targeting an internal rate of return of 15% after gearing.

Growth would be generated from value enhancement of the fund’s assets, but returns would come mainly from income-producing assets rather than development profits.