UK fund's up market buy down under

THE New Star International Property Fund has raised over 206 million pounds and is contracted to buy 121 million pounds worth of properties, including a retail asset in Sydney.

The fund is the first of its kind in the United Kingdom to offer retail investors access to international direct commercial property including Europe, Asia and Australia.

In Australia, the fund has paid approximately $19 million for the 650 sqm Bulgari store at 64 Castlereagh Street in the Sydney CBD.

The fund currently has a further 40 million pounds worth of properties in Australia, France, Sweden and Germany under contract.

New Star’s property team, with its strategic partners, DTZ and CB Richard Ellis, have also turned their attention to Denmark, Norway, Hong Kong, Korea, New Zealand and central Europe, in anticipation of continued strong inflows.

New Star’s chief executive of property fund management Roger Dossett said to raise £206 million at launch is highly encouraging.

“There is excellent value to be found in Continental Europe and Asia and strong inflows have enabled us to position our portfolio strategically in some of the most attractive countries and cities.

“Not only have we committed these inflows in a timely fashion, we have acquired a diverse range of prime assets and tenants for our investors. The acquisitions we have made and the properties we have identified for purchase represent 80% of the value of the fund,” he added.

“This is in line with the fund’s aim, which is to be 80% invested in direct commercial property. The remainder of the fund will be invested in a combination of property securities and cash for the purposes of liquidity.

“There is clearly a strong demand for international direct commercial property and we have already found a number of properties and markets that will form the next stage in the continued growth and diversification of the New Star International Property Fund,” Dossett concluded.

Australian Property Journal