This article is from the Australian Property Journal archive
REAL estate fund manager EG Funds Management has secured a project agreement with Singapore’s sovereign wealth fund GIC, with an initial capacity to buy up to $400 million.
The GIC mandate follows on from EG’s Yield Plus Infrastructure Fund No 2 (YPI2), which acquires income producing real estate near new or upgraded transport infrastructure.
Roger Parker, executive director, said EG as pleased to welcome GIC to the next iteration of the investment strategy, focusing on revitalising assets and neighbourhoods, “which has delivered such success for our investors over the long term”.
“We look forward to a new long-term relationship.”
GIC has just boosted its interest in the ESR Australia Logistics Partnership to 80%, taking its commitment in the joint venture to $480 million. Last month, it partnered up with Charter Hall to acquire a 49% stake in a new $1.4 billion Ampol Property Trust that will own 203 convenience retail properties across Australia.
Meanwhile, EG is analysing opportunities for the final round of investment for YPI2, which originally launched in 2016. The unlisted fund has acquired ten assets to date, including a fully leased St Leonards office building it recently picked from AMP Capital for $33.8 million, on a net passing yield of 5.5%.
“The strategy targets commercial, industrial and retail assets in close proximity to transport and community infrastructure in Sydney and Melbourne,” said EG associate director, Sean Fleming.
At the same time as the St Leonards purchaser, EG Funds also paid $38.2 million for an 18,514 sqm facility in Ingleburn with three buildings and anchored Austcor Packaging, on a yield of 5.42%.
