Australian Property developer Lend Lease Corp. announced Monday it has started a new wholesale investment fund aimed mostly at sub-regional retail centers, and that institutional investors had already committed A$185 million ($180 million).
Lend Lease will have about a 3 per cent co-investment in the fund that will seek to invest in quality sub-regional retail centers, according to a statement.
The new fund underlines rapid growth in the unlisted property fund market for institutional investors, which is attracting those seeking steady rental income and who want to avoid volatility in the listed sector.
CEO and Managing Director Steve McCann says the company continues to attract institutional equity partners to invest alongside it in its quality deal flow and pipeline.
Lend Lease Group reported a net profit of $219.4 million in the first half of its 2012 financial year.
McCann said similar funds launched over the past couple of years were now fully invested. Those include Lend Lease Real Estate Partners New Zealand, started in 2011 with NZ$210 million, and Lend Lease Real Estate Partners 3, launched in 2010 with A$430 million.
