Dutch pension fund PGGM has committed to invest in Australian realty fund managed by EG Funds Management, in a bid to strengthen its presence in the region.
According to a statement EG issued on Wednesday, PGGM has joined four Australian investors to give EG Australian Core Enhanced (ACE) Fund the ability to invest over $1.25 billion.
This marks the second investment by PGGM in EG ACE over the past months. Last November, PGGM made headlines when it entered into an A$800m partnership with Charter Hall to target industrial and logistics assets.
EG ACE is an open-ended, diversified real estate fund that has already acquired five assets totalling $234 million.
“The initial investment strategy has been to target light industrial and logistics assets in Sydney and Brisbane, with a counter cyclical investment in the Perth office market,” said ACE fund manager Michael Noblet. “Moving forward, we will focus on inner urban industrial assets, resilient well-located office buildings and non-discretionary retail assets”.
Meanwhile, EG executive director Roger Parker added: “We have fielded significant interest in the strategy from many domestic and offshore investors”.
Founded in 2000, EG is currently scouting for additional properties for acquisition as it carves out its growth path through the inorganic growth route. It manages $4.3 billion under management on behalf of super funds and private wealth clients.