Dixon Advisory, a financial planning entity, announced today that raised a total of US$161 million for a new commercial property fund. The new fund is said to focus on small to medium sized properties in the retail, office, and industrial sector.
The fund, called Australian Property Opportunities Fund, ended oversubscribed. A surplus of US$60 million beyond the maximum offer size transpired. The new fund will have an estimated US$300 million for investments in commercial assets on the country's eastern seabord. The targets of the fund will most likely be properties with attractive income profile that have been adjusted considering risk.
Dixon Advisory will be investing the fund diversely. The financial planner will be filling its portfolio within the next 12 to 24 months, the perfect time to invest in the region due to currently low interest rates.
"With the spread between commercial property yields and cash rates rising to 10-year highs, we believe this is an attractive time for investors to generate stable rental income, and potentially longer-term capital gains, through an investment in commercial property," said the fund's chairman Alex MacLachlan.
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