EG Funds Management today announced the launch of their Yield Plus Infrastructure Fund No. 2 (YPI 2). The closed-ended, unlisted real estate fund raised just under AU$400 million in equity at first close with both domestic and offshore institutional investors.
EG plans to target commercial, industrial and retail assets in major Australian cities to create a portfolio of circa AU$750 million. The predecessor of this fund, Yield Plus Infrastructure Fund No. 1 (YPI 1), acquired 17 assets, including the “jewel in the crown” Flour Mill of Summer Hill site.
“EG will bring our 16 year track record in successful management of complex urban planning processes to rezone land to highest and best use alongside key infrastructure corridors,” says EG Executive Director Roger Parker.
EG’s YPI 2 will be focusing on yielding property assets near new and upgraded infrastructure, such as Sydney’s North West Rail Link or the Melbourne Metro Rail project. The rezoned assets will then be ready for development at the appropriate point in the market cycle.
“This fund will be our third fund under EG’s Absolute Alignment® model. The capacity for this model to engender trust and long term alignment between EG and our investors has been comprehensively demonstrated,” says CEO Adam Geha.
“Investors want to know that fund managers are in it for the long haul, especially given that these funds can span a decade.”
YPI 2 will be the second fund that EG has launched this year after launching the High Income Sustainable Office Trust in July, with equity commitments of over AU$150 million from institutional investors. EG’s current assets under management are circa AU$2.4 billion.