Real estate fund manager EG has wound down its core plus fund with the sale of a significant retail asset in Brisbane to a major Perth-based private syndicator.
EG originally purchased the Northwest Plaza at Everton Park in north Brisbane from Consolidated Properties for $41.2 million.
The 9,489-square metre centre, on a 3-hectare site in Flockton Street, has now been sold for $42.5 million, with the real estate group closing its CPF1 fund, launched in 2014.
The fund has returns exceeding 20 per cent annually, while selling down maturing investments.
Assets sold by EG include office properties 92 Pitt Street in Sydney for $55 million, 277 William Street in Melbourne, which sold for for $93.88 million and 223 Liverpool Street in Darlinghurst for $33 million.
“We are incredibly happy with the performance of CPF1,” EG divisional director Daniel Farley said.
“The fund has vindicated the investment strategy of identifying and acquiring assets which disproportionally benefit from repositioning while also ensuring strong underlying cash-flows on limited downside risk.”
EG is already considering a number of properties for acquisition and it will be opened to further investment for the next 12 months, targeting up to an additional $500 million of equity.
The fund manager’s new Australia Core Enhanced (ACE) fund will target underperforming office, industrial and retail properties and seek to reposition them as core investments generating higher returns.
The fund manager said it had secured equity commitments from four local institutional investors providing it with the ability to invest over $800 million.
The Sydney-based fund manager has been stepping up its funds management operations and in April won the Tasplan Superannuation Fund as an investor in its high income sustainable office trust with a $50 million commitment.
That fund targets office assets with low National Australian Built Environment Rating System (NABERS) energy ratings that can be repositioned.
EG currently has $2.4 billion in assets under management with investments spread across half-a-dozen unlisted funds.