This article is from the Australian Property Journal archive
ALTIS Property Partners has secured $600 million in new equity commitments from two global institutional investors, giving it the capacity to target $1.2 billion worth of value-add and counter-cyclical Australian real estate.
The capital secured is for two Altis funds, Altis Real Estate Equity Partnership 4 (AREEP4) and Altis Industrial Fund 1 (AIF1).
AREEP4 is focused on value-add industrial, large format retail, and counter-cyclical office investments and has already acquired a $31.5 million industrial warehouse with development potential in Perth’s Hazelmere.
AIF1 is a newly-created fund focused on procuring a diversified portfolio of value-add, core-plus, and develop to core industrial assets across Australia.
“In a post-COVID, post low-interest rate underwriting environment, the ongoing re- pricing of the various real estate sectors provides great opportunity to procure $1.2 billion-plus of quality assets across Australia at attractive buy-in prices,” said James King, director investment management and capital at Altis.
Gareth Price, director capital transactions at Altis said the reserve bank’s rapid interest rate increases to combat inflation is mounting pressure on some asset owners, “creating less competition with a lot of managers and global capital sitting on the sidelines”.
“As a result, Altis is experiencing increased deal flow across all sectors, both on and off-market.”
Paul Notaras, executive director at Altis said the drivers for this market correction are very different to the GFC.
“We remain highly selective and discerning as we anticipate deep value investment opportunities will emerge in 2023 and 2024.”
Altis was acquired by global investment manager Barings in August.
Since 2011, Altis’ value-add funds have outperformed the MSCI Australia Annual Property Index on average by over 450 basis points and in some fund vintages, Altis has delivered 100% outperformance above the index.
Altis has teamed up with Aware Super on a build-to-rent initiative and last summer offloaded the ACT Department of Health offices for $84.6 million.
