ReCap looks to raise capital
A property fund manager is raising funds ahead of what it predicts will be a number of distressed sales next year.
Real Estate Capital Partners (ReCap) chief executive officer Andrew Saunders said the current market would create many opportunities as the banks are forced to act on non-performing loans.
“Investors are seeking managers with a track record in both down and up markets which are capital ready to acquire distressed properties and securities,” he said.
“Our EntRE vehicle is seen as an active buyer with the ability to identify value and execute deals, which is why several distressed sellers sought us out.”
The fund’s most recent transaction was buying the management rights of two property funds from Mariner at a price of 3.5 times below the previous benchmark for these types of transactions, Saunders said.
EntRE raises investment funds for a specific purchase and then makes distributions to investors once a deal has been completed.
In July 2007, PH Sydney Hotel Group was acquired by EntRE for $1.01 per unit and sold seven months later at $1.42, giving an internal rate of return in excess of 50 per cent.
“The challenge for investors is to know where to find these opportunities and how to access them,” he said.
Recommended for you
Two commentators have shared why the inclusion of alternatives in a diversified portfolio shouldn’t be a simple switch with a traditional asset and will depend heavily on clients’ objectives.
Morgans chief executive, John Clifford, has announced he will step down from the wealth management group after eight years leading the business.
Funds under administration on the BT Panorama platform have passed $120 billion in the last six months as it progresses its migration of Asgard into the platform.
Private markets may be the hot topic of the day but two financial advisers have shared the red flags to consider and why advisers shouldn’t be tempted to invest solely in the pursuit of higher returns.
