Sydney-based real estate fund manager EG Funds Management is set to close its second Australia-focused value-add private equity real estate fund. The firm is anticipating to raise between A$350 million (€238 million; $266 million) and A$400 million in equity.
Yield Plus Infrastructure Fund II, the second in the series of blind-pool commingled vehicles launched by the Australian manager to invest in assets with a repositioning and redevelopment potential across the country, came to market in early 2015.
The firm declined to comment on fundraising. However PERE has learnt from sources familiar with the fund launch that the firm is on track to corral the full amount within a first and final close by June this year.
The capital will be committed by a total of five institutional investors, including Australian superannuation funds. The minimum ticket size of investments is A$10 million.
Capital raised via the Yield Plus Infrastructure fund series is aimed for investment in yield-producing assets, across offices, retail and industrial sector, that stand to gain from urban renewal arising from improvement in infrastructure surrounding the property. This could be done through rezoning, repositioning and redevelopment.
Fund II will have a 9-year term. The firm is expecting the investments to yield a net realized IRR of around 14 percent.
EG Funds Management also runs a A$400 million core-plus mandate which focuses on Sydney, Melbourne and Brisbane. The firm made its sixth investment from the mandate in May last year with the acquisition of an industrial site at an initial passing yield of 10 percent, and is expecting to deploy the rest of the capital imminently.
EG Funds Management was established in 2000 and has three divisions namely funds management, advisory and property development. The fund management division has A$800 million in equity assets under management.