(Sydney, Australia) EG, a leading Australian real estate fund manager, is pleased to announce the launch of a new core enhanced fund with equity committed from four investors providing the ability to invest over $800 million.
EG Australian Core Enhanced Fund (ACE) is an open-ended, diversified fund targeting office, retail and industrial in Australia.
“Investors are increasingly interested in the superior risk adjusted returns that can be realised from assets which can be re-positioned to core, while ensuring the additional risks are managed by a proven management team” said Head of Australian Core Enhanced Fund Daniel Farley. “EG is looking forward to many more successes for our investors with the launch of ACE.”
EG will utilise its’ proprietary data engine and risk management platform, PRISMS® when assembling the portfolio. Each asset is assessed on an individual basis to determine the optimal asset management strategy to maximise returns and/or transition non-core properties to core assets.
EG brings a proven track record to the project, achieving IRR well in excess of 21.4% p.a. for a similar, prior fund. This included the most recent disposals of 277 William Street, Melbourne at 44% equity IRR in July 2018 and the Veolia Waste Transfer Facility in Matraville, Sydney at 39% equity IRR in December 2017.
EG are already considering a number of properties for acquisition that satisfy the criteria for the EG ACE mandate.
EG ACE will be opened to further investment for the next 12 months, targeting up to an additional $500m.