Altis Property Partners, a Barings Company secures equity commitments of A$600 million from global institutional capital

Altis Property Partners has confirmed it has secured equity commitments of A$600 million from two global institutional investors to focus on industrial, large format retail, and counter cyclical office markets.

The funds will target value-add, core-plus, and develop-to-core real estate 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.