Altis Property Partners has secured A$600m (β¬389m) worth of capital commitments for real estate strategies in Australia.
The capital was raised from an existing investor and a newcomer β one is an Australian super fund and the other a European institution.
The equity is to be deployed on value-add, core-plus, and develop-to-core real estate with a focus on industrial, large format retail, and counter-cyclical office in Australia.
James King, director of investment management and capital at Altis, told ΒιΆΉΣ³» Real Assets the new equity would be channelled into the latest vehicle in the flagship value-add series, Altis Real Estate Equity Partnership 4 (AREEP) 4, and the newly-established Altis Industrial Fund (AIF) 1.
King explained that, historically, the firm had been focused on a value-add strategy through the AREEP fund series.
βIn this case,β he said, βwe have a significant client that wanted to just be in its own vehicle and specifically focussed on the industrial component, not other multi-sector focusses that the AREEP series has. That is why we have done it with two vehicles.β
King said AIF1 was focused on procuring a diversified portfolio of high-quality value-add, core-plus, and develop-to-core industrial assets across Australia.
The AREEP4 fund has acquired a A$31.5m industrial warehouse at Hazelmere in Perth. βWe will renew the lease on the warehouse and build a new facility on the surplus land on site,β King said.
βThis is an example of our value-add deal. We will also look at core-plus and develop-to-core and at greenfield and brownfield development opportunities.β
King said: βIn a post-COVID, post-low-interest rate underwriting environment, ongoing re-pricing of the various real estate sectors provides great opportunity to procure A$1.2bn-plus of quality assets across Australia at attractive buy-in prices.β
Back in August, global investment manager Barings agreed to buy Australia-based real estate firm Altis for an undisclosed sum.
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