Castlerock Property achieves $90 million goal in seven weeks

30 August 2021

The property fund manager Castlerock has reached its goal for the $90 million capital raise to fund the acquisition of the $145.2 million Icon building in Ipswich’s CBD, allocating all the available funds in just seven weeks.

The Auslink Property Trust No. 2 opened on 1 July 2021, giving investors the first opportunity to invest in the fund since October 2020. After receiving a strong response from current and new investors, all available units have been snapped up and the fund has closed again with assets in the fund approaching $500 million.

Castlerock Director Adam Bronts says: “This capital raise was the largest in Castlerock’s 18-year history, so it was extremely gratifying to see such keen investment appetite for the fund. We are very grateful to current and new investors who have supported this capital raising.

“We were confident of raising the $90 million considering a forecast return of 7.2% a year, as well as the strong performance of past acquisitions and developments, but the fact we did so in seven weeks reflects both the appeal of this fund and the high level of demand for quality property assets delivering healthy returns.”

The Icon building, situated in Ipswich’s Brisbane Street, is a nine-storey, 17,870 square metre building (17,080 office/790 retail) that has the Queensland State Government as its major tenant, accounting for more than 91% of the net lettable area.

“Castlerock’s strategy has always been to invest in high quality assets and to build strong relationships with stable tenants such as the Queensland State Government”.

“Our dedicated team are constantly looking for new investment opportunities, so for investors who missed out this time there will be further capital raisings to come” Bronts says.