Castlerock Secures $35M in Capital Raise, Earns Favourable SQM Rating, Highlighting Growth Potential

Castlerock, a premier property fund manager specialising in direct property social infrastructure, has successfully raised $35 million in capital. This achievement highlights that while opportunities may be limited, those with the knowledge and expertise can still find and capitalise on them. This capital raise, coupled with a ‘favourable’ rating from Australia’s esteemed investment research firm SQM Research, underscores the sector’s potential for long-term growth and investor confidence.

Adam Bronts, Director of Business Development at Castlerock, stated, “The recent $35 million capital raise reflects strong investor confidence in our strategic approach and the opportunities we continue to identify and capitalise on. These funds enable us to pursue acquisitions or developments of premium quality in trusted locations beyond the CBD.”

SQM Research noted in its report on the Castlerock Government Property Fund, “The robust approach applied to its research and portfolio construction, the stringent screening process for all State and Federal tenders, and the meticulous due diligence ensure the attractiveness of suburban and regional locations. As a result of Castlerock’s long-term stable investment philosophy, we have awarded the ‘favourable’ rating to highlight the rock-solid nature of the Fund, particularly in the current investment climate. There is also potential for the Fund to outperform over the medium-to-long term.”

Despite some negative sentiment surrounding office spaces, significant opportunities remain. Castlerock’s strategic focus on ‘beyond-CBD’ locations and partnerships with government tenants provides investors with a stable income stream, even during market volatility.

Castlerock’s investment strategy centres on the development and management of government-leased assets, targeting ‘sticky tenants’ in prime locations outside Australia’s CBDs. These locations are selected for their long-term tenancy stability.

The Government Property Fund offers investors a high-quality, diversified portfolio comprising 13 State and Commonwealth Government-leased assets across five states, with funds under management (FUM) totalling $526 million.

Currently, the Fund is closed, having successfully raised $35 million for the acquisition and development of new assets aimed at sustaining growth and diversification. It is scheduled to re-open in August 2024.