Australasian real estate fund manager Centuria Capital has raised A$50m (€30m) for its latest fund.
The manager said Centuria Select Opportunities Fund (CSOF) will “execute a counter-cyclical strategy to access opportunities across diverse property and real estate finance sectors”.
CSOF has been seeded with an industrial asset, acquired for A$20.6m, in the southeast of Melbourne’s industrial heartland of Keysborough. The fund aims to deploy its capital in the coming 15-month period and is targeting a 15% internal rate of return over its five-year term.
Jason Huljich, Centuria joint CEO, said the fund was positioned to capitalise on attractive medium term market opportunities and would also target direct and indirect investments that lent themselves to the capabilities of Centuria’s in-house real estate team, such as leasing, repositioning, refurbishment and development.
He said the fund would identify assets where it could provide value-add opportunities such as positive rental reversions, as was the case for the Keysborough investment and it would target industries with strong tailwinds that lent themselves to supply-demand imbalances and growth opportunities.
Centuria, which manages a A$6bn industrial platform, said it is co-investing alongside its wholesale investors “because we believe in this high conviction investment strategy”.
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