The property funds management division of Australia's Multiplex Group said that it had raised A$ 184.45 mln (EUR 116 mln) for its first European real estate fund. The fund's assets are currently all in Germany, although Multiplex Capital had said previously that it would also look for investment opportunities elsewhere in Europe. In a statement on the fund's closing, Multiplex Capital said that its Multiplex European Property Fund had been oversubscribed, but it did not say by how much. Multiplex Property Trust has acquired a 20.15% stake in the fund.
The property funds management division of Australia's Multiplex Group said that it had raised A$ 184.45 mln (EUR 116 mln) for its first European real estate fund. The fund's assets are currently all in Germany, although Multiplex Capital had said previously that it would also look for investment opportunities elsewhere in Europe. In a statement on the fund's closing, Multiplex Capital said that its Multiplex European Property Fund had been oversubscribed, but it did not say by how much. Multiplex Property Trust has acquired a 20.15% stake in the fund.
'We are extremely pleased with the strong take-up of the Multiplex European Property Fund, reflecting Australian investor interest appetite in seeking quality offshore property investment alternatives with strong lease covenants,' said Multiplex Capital fund management director Rob Rayner. Multiplex said it is targeting annualised income returns of 8.5% on an initial portfolio valued at EUR 363.3m. That portfolio consists of 67 retail, logistics, office and nursing home properties throughout Germany with an average vacancy rate of about 2%.
Europe, and Germany in particular, has become a favourite target for cash-rich Australian property investors. According to a Jones Lang La Salle report issued in March, Australian property funds invested some US$6 bn in Europe in 2006, equivalent to half of the US$12 bn they invested last year outside of their home country, where there is a limited product supply. Germany alone accounted for US$3.5 bn of Australian property fund investments in 2006. Sydney-based Multiplex is now the object of a take-over offer from Toronto-based property and asset fund manager Brookfield after the family that founded Multiplex agreed to sell its 25.6% stake to Brookfield.