Stockland’s first residential land development fund, Stockland Residential Estates Equity Fund No.1 has closed oversubscribed raising $75 million from wholesale investors.
The wholesale fund exceeded initial capital raising targets by 25%, with investments from major superannuation funds, institutional investors and a small allocation to private investors.
Stockland’s chief executive of unlisted property funds Robb Macnicol said SREEF1 received strong support from the wholesale market.
“The SREEF series provides a strategic, long term capital partner for Stockland’s residential development business and a strong platform for future growth as we continue to progress our wholesale funds management strategy,”
Macnicol said the fund’s investment pipeline will be sourced by Stockland Development Division in the open market.
“To commence the investment phase, Stockland has offered the fund a 50% interest in an existing project in the strongly performing Western Australian market, the Vertu Private Estate, as a seed project. An investment in the project is expected shortly subject to completion of due diligence by the fund,” he added.
Macnicol said following the capital raising Stockland will launch new funds to both retail and wholesale investors.
By Kathryn O’Meara
