Multiplex Capital to launch new European property fund
Multiplex Capital, the property funds management division of Multiplex Group, will establish a new European property fund, the Multiplex European Property Fund (MEPF).
The fund’s assets will initially comprise 67 properties throughout Germany, valued collectively at $595 million, although the fund will look to acquire assets throughout Europe.
MEPF will be managed from Sydney, while the property portfolio, which is weighted towards the retail sector, will be managed from Luxembourg, with the assistance of vendor group REIT AM GmbH.
Key features of the properties, 84 per cent of which are less than seven years old, are a 98.5 percent occupancy rate and ‘blue chip’ tenants with long-weighted average lease terms of approximately 10 years.
Settlement of the portfolio, as well as capital raising for MEPF, are due to take place in the second quarter of next year.
Multiplex Capital managing director Ian O’Toole said MEPF represents the next phase of Multiplex Capital’s strategy to “build on what is now a substantial funds management platform”.
“We are creating a constellation of funds that offer a wide variety of equity participants a range of outstanding investment vehicles in a number of geographic markets.”
He said he anticipates strong investor demand for the fund, describing Germany as a “significant global property market with positive indicators for growth”.
Recommended for you
Betashares and Global X have announced they will both be launching new products focused on defined income bonds and Chinese technology, respectively.
Sydney investment manager Vado Private has welcomed a new director and head of funds management to its team as it seeks to grow its presence in the Australian private credit market.
Clime Investment Management has been appointed by a US investment firm to manage a portion of its multi-asset fund with managing director Michael Baragwanath hopeful that increased revenue can boost its domestic operations.
A potential deal between Platinum Asset Management and L1 Capital may unlock cross-selling benefits but will be unlikely to reverse structural challenges facing active managers, according to Morningstar.