THE British are coming to Australia, but this time round it will be in the form of a property fund.
New Star Asset Management will give
The fund will have initial capital of £200-£300 million pound and 80% of its investments will be in direct commercial property and 15% in property related securities outside the
New Star’s investment mandate includes allocating 40% of funds towards
New Star’s chairman John Duffield said
“Until now the only way that retail fund investors have been able to access commercial property outside of the
New Star’s head of mutual funds Cobus Kruger told Reuters the fund was launched as a result of
“The feedback has always been great; ‘but why are you only in the
New Star already managed a £1.9 billion of
This fund will aim to deliver annual returns of at least 10%.
New Star’s head of property Roger Dossett said the key is to find properties let to high quality tenants on strong leases with good prospects for rental growth.
The group has engaged DTZ to source properties in
New Star’s announcement will reverse the recent trend of Australian investors sending their capital overseas.
According to a recent Jones Lang LaSalle Research, in 2006 alone Australian investors spent $US11 billion on overseas real estate roughly the same total value of direct real estate transactions in the domestic Australian market.
Australian investment in
Earlier this month, Macquarie Goodman bought one of the
And in February this year, Stockland launched into the region with a £170 million pound ($A430 million) takeover of Halladale Group plc.
Australian Property Journal
