Commercial real estate lender MaxCap Group has raised an initial A$250m (€171m) for its second unlisted wholesale equity fund.

The Melbourne-based manager said the capital raising for MaxCap Diversified Opportunity Fund (MDOF) at the first close was upgraded from A$200m to A$250m. The second tranche would be raised during the third quarter of this year.

MDOF was designed to give investors an opportunity to gain exposure to Australian real estate development and value-add opportunities through joint venture partnerships with developers, Simon Hulett, MaxCap’s head of direct investment said.

Hulett said that, currently, MDOF had secured three developments in Melbourne and Brisbane.

“We are currently in exclusive due diligence on four further opportunities that would take the capital allocated to more than A$120m,” he said.

“This vehicle is seeking investment opportunities through a range of equity and high-yielding debt structures,” Hulett said.

MDOF is a closed-ended 5-year fund targetting a risk-adjusted return to investors of 18%. 

MaxCap’s first unlisted wholesale equity fund, MaxCap Industrial Opportunity Fund raised more than A$100m, which had been deployed in five industrial and land assets and was currently forecast to return investors in excess of 20%, he said.

To read the latest edition of the latest IPE Real Assets magazine click here.