Russell Investment Group’s Global Property Fund 1 (GPF1) has generated around US$180 million for its first close.
The aim of the ‘fund of funds’ — open to Australian wholesale superannuation funds — is to achieve a 13 per cent net internal rate of return over a 10-year term, from the end of the three-year investment period. The fund’s final close will be on December 17 this year.
The fund, which was tailored exclusively for compliant superannuation funds, affords investors direct access to a set of specialist global strategies for the property markets of the Americas, Europe and Asia ex Australia.
Russell managing director of institutional investor services Stephen Roberts said the fund enabled local investors to complement their traditional income-oriented property exposure with higher-return, international property investments.
“We have made sure that GPF1 will exploit opportunities in the global private equity property market. Now, with the fund’s first closing, we can begin making investments into the underlying funds. We see a number of exciting opportunities for the fund to capture value by utilising managers that have unique access to their local property markets,” he said.
