EG Secures Investors for New $800m Fund

Real estate fund manager EG has announced a new core fund with equity committed from four investors providing the ability to invest more than $800 million worth of assets.

The EG Australian Core Enhanced Fund (ACE) will target office, retail and industrial assets in Australia.

The core fund will be opened to further investment for the next 12 months, targeting up to an additional $500 million.

Head of Australian Core Enhanced Fund Dan Farley said EG were already considering a number of properties for acquisition.

“Investors are increasingly interested in the superior risk adjusted returns that can be realised from assets which can be re-positioned to core, while ensuring the additional risks are managed by a proven management team,” Farley said.

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The group, which has $2.4 billion in assets under management, had returns in excess of 21.4 per cent for its similar, prior fund.

This includes the most recent sales of 277 William Street in Melbourne, which it sold for $93.8 million last year after buying it in 2015 for $45.9 million, as well as divesting the Veolia Waste Transfer Facility in Matraville Sydney in December 2017.