17 November 2022
Altis Property Partners, a Barings Company secures equity commitments of A$600 million from global institutional capital
- Altis secures A$600 million from two global institutional investors to procure $1.2 billion+ portfolio for Australia multi-sector value-add, core-plus, and develop-to-core real estate funds.
- Capital secured across two Altis funds, Altis Real Estate Equity Partnership 4 (AREEP4) and Altis Industrial Fund 1 (AIF1).
- AREEP4 is focused on value-add industrial, large format retail, and counter cyclical office investments.
- AREEP4 has already acquired a $31.5 million industrial warehouse with development potential in Hazelmere Perth.
- AIF1 is a newly created fund focused on industrial value-add, core-plus, and develop-to-core.
Sydney, Australia, 17 November 2022 – Altis Property Partners (Altis), a market leading thematic and value-add Australian real estate fund manager, is pleased to announce it has secured equity commitments of A$600 million from two global institutional investors.
The funds will target value-add, core-plus, and develop-to-core real estate with a focus on industrial, large format retail, and counter cyclical office in Australia.
The capital has been secured across two Altis funds, the latest vehicle in the flagship value-add series Altis Real Estate Equity Partnership 4 (AREEP4) and newly established Altis Industrial Fund 1 (AIF1).
AREEP4 is focused on curating a diversified portfolio of income producing value-add Australian industrial, large format retail, and counter cyclical office assets. The fund has already acquired a $31.5 million industrial warehouse with development potential in Hazelmere Perth.
AIF1 is a newly created fund focused on procuring a diversified portfolio of high-quality value-add, core-plus, and develop to core industrial assets across Australia.
Since 2011, Altis’ value-add funds have outperformed the MSCI Australia Annual Property Index on average by over 450 basis points and in some fund vintages, Altis has delivered 100% outperformance above the index.
James King, Director Investment Management and Capital at Altis said: “We’re delighted to have secured significant new capital commitments from two top-tier global institutional investors in a challenging capital markets environment. In a post-COVID, post low-interest rate underwriting environment, the ongoing re-pricing of the various real estate sectors provides great opportunity to procure $1.2 billion+ of quality assets across Australia at attractive buy-in prices. These commitments reflect the trust institutional clients have in the team and its ability to consistently achieving alpha returns for their real estate portfolios through our thematic driven, disciplined and value seeking approach.”
Gareth Price, Director Capital Transactions at Altis said: “The reserve bank’s rapid interest rate increases to combat inflation is mounting pressure on some asset owners, creating less competition with a lot of managers and global capital sitting on the side-lines. As a result, Altis is experiencing increased deal flow across all sectors, both on and off-market.”
Paul Notaras, Executive Director at Altis said: “The drivers for this market correction are very different to the GFC and as a result, we remain highly selective and discerning as we anticipate deep value investment opportunities will emerge in 2023 and 2024.”
In August 2022, Altis was acquired by Barings, one of the world’s leading investment managers.
Altis Property Partners, a Barings Company
Founded in 2008, Altis Property Partners (Atis) is an Australian, independently-owned, private equity real estate investment company. It has extensive experience and expertise in industrial, office, retail warehouse, residential and other specialist real estate sectors across the risk spectrum including core, value-add and development. Since inception Altis has acquired and developed over A$8 billion of real estate with current assets under management of ~A$6 billion. Learn more at aure.barings.com
Altis was acquired by Barings in August 2022. Refer https://aure.barings.com/2022/08/11/barings-to-acquire-altis-property-partners-2/
Barings is a US$349+ billion* global investment manager sourcing differentiated opportunities and building long-term portfolios across public and private fixed income, real estate, and specialist equity markets. With investment professionals based in North America, Europe and Asia Pacific, the firm, a subsidiary of MassMutual, aims to serve its clients, communities and employees, and is committed to sustainable practices and responsible investment. Learn more at barings.com.
*As of June 30, 2022