Resources Real Estate Global Property Securities (Australia) will invest in U.S. mall owners, European office landlords and Australian warehouse and housing developers with its new fund.
RRE Global Property prefers the two biggest (SPG:US) U.S.-based mall operators -- General Growth Properties Inc. (GGP:US) and Simon Property Group Inc. (SPG:US) -- and U.K. developer Derwent London Plc (DLN), John Snowden, joint portfolio manager, said. It also likes Australia’s biggest industrial landlord, Goodman Group (GMG), diversified developer Stockland (SGP) and Mitsui Fudosan Co. (8801), Japan’s largest developer, he said.
The fund is seeking as much as A$300 million ($282 million) from Australian investors over the next two years, the company said earlier this week. The manager wants to take advantage of a revival in U.S. and European retail sales, an Australian housing recovery and rising rents and falling vacancies in Asian commercial properties, Snowden said.
“While we like broad subsectors, we are focusing on individual companies within those,” Snowden said in a telephone interview yesterday. “There’s significant appetite from investors, so over the next couple of years, we believe A$200 million to A$300 million is achievable.”
The open-ended fund, a joint venture between Resource Real Estate, a unit of New York-based Resource America Inc. (REXI:US), and Brisbane-based Channel Capital, will seek to raise the funds from institutional and “sophisticated” investors, and will invest them as they’re received, Snowden said.
RRE also plans to introduce a global property securities fund in the U.S. next year, Snowden said. Hong Kong, Singapore and Japan are also attractive markets in which to raise capital, he said.
The Australian fund will begin investor roadshows and capital raising in the second half of October, Snowden, who will run the vehicle in partnership with Scott Crowe in the U.S., said.
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