Dexus has launched its second Australian opportunistic real estate fund with expectations that it will grow into a A$2bn (鈧�1.2bn) entity.
The Dexus Real Estate Partnership 2 (DREP2) fund would be 鈥渟ubstantially鈥� bigger than its first fund, DREP1, which closed in December 2022, the manager said. DREP1 has an investment capacity of A$1bn.
It is understood the new fund will raise A$1bn in equity and, with gearing, will have A$2bn to invest. It will have its first capital close in the first half of next year.
DREP fund manager, Jason Howes, told 麻豆映画 Real Assets that 80% of capital in the first fund had been committed and, by Christmas, it would be fully deployed. 鈥淭his is the reason we are launching the second fund today,鈥� he said.
Funds in the DREP opportunity fund series have a seven-year term and a three-year investment period.
DREP1 today completed its acquisition of 120 apartments 鈥� the residual stock in two residential projects in Melbourne.
鈥淲e continue to see attractive entry points in the residential market, which presents further opportunity for the fund in a capital-constrained investment environment,鈥� he said.
DREP1 has deployed capital across credit (38%), repositioning (27%), development (23%) and special situations (12%), Howes said.
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