This article is from the Australian Property Journal archive
FRANKLIN Templeton Real Estate Advisors has launched a new global diversified private real estate fund in Australia.
The Franklin International Real Estate Fund 3, is the fourth global private real estate fund launched in Australia.
The first FIRE Fund closed in December 2003 raising total commitments of $US91.7 million from Australian institutional investors – it was one of the first fund of funds products to invest in the global private equity real estate market offered to Australian investors.
The second FIRE Fund closed in June last year raising a total of $US398 million from Australian institutional investors.
Franklin Templeton’s managing director and head of global real estate Jack Foster said FIRE Fund 3 offers attractive opportunities for diversification and seeks to achieve high risk-adjusted returns.
“Our vehicles provide an efficient way for institutional investors to access the global property markets. Previously, investors risked being over-exposed to one market or sector. Property is still an asset class which depends on local knowledge and our funds capitalize on local expertise across the globe.
“Unlike some other asset classes, which display a high correlation across different markets, property also has a very low correlation between countries.” Foster said.
Franklin Templeton Investments Australia’s managing director Maria Wilton said the investment allocations to global property are likely to increase due to challenging valuations in the Australian real estate market.
“In our view, there is much capital chasing a small universe of quality property investments,” she concluded.
Australian Property Journal