Dexus, a prominent real estate investment manager, has successfully secured over A$300 million (€184 million) for its latest real estate opportunity fund, marking a significant milestone in its fundraising efforts. This achievement comes as the fund, known as the Dexus Real Estate Partnership 2 (DREP2), enters its initial phase of fundraising.
The DREP2 fund, launched in October of last year, has garnered substantial interest from both new and existing investors, reflecting a strong investment appetite in the current market environment. Managed by Dexus, the fund aims to raise up to A$1 billion in equity, with plans for multiple rounds of financing expected to conclude within the year. Once fully capitalized, the fund is poised to deploy as much as A$2 billion in strategic real estate investments.
Deborah Coakley, Chief Executive of Fund Management at Dexus, emphasized the success of the fundraising effort, highlighting the ongoing demand for investment opportunities offering attractive returns. “This successful fundraising illustrates the continued investment appetite for higher returns,” stated Coakley.
Jason Howes, the manager of the DREP2 fund, expressed confidence in the fund’s strategy, outlining its investment focus and geographic allocation. “Our capital deployment targets include a balanced approach, with a maximum of 33% allocated to credit opportunities and the majority directed towards equity repositioning and special situations strategies,” said Howes. He further noted that the fund’s investment selection process would be disciplined, aiming to capture only a small fraction of potential opportunities while targeting a 15% internal rate of return (IRR), aligning with the performance objectives of its predecessor fund, DREP1.
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By Proptechbuzz
By Ravi Kumar