EWI Capital Commits A$100 Mln As Anchor Investor In Australian Office Fund
KUALA LUMPUR, Oct 30 (Bernama) -- EWI Capital Bhd’s wholly owned subsidiary, EWI Investment Holdings Ltd, has made a strategic shift towards investment holding with a commitment of A$100 million (RM276.5 million) as an anchor investor in the TrustCapital Australian Office Fund No. 3 (Fund).
The Fund will be managed by Singapore-based investment and advisory firm TrustCapital Advisors Investment Management Pte Ltd (TCA), which has a track record in acquiring, managing and divesting Australian office properties.
In a filing with Bursa Malaysia, EWI Capital said the Fund’s objective is to generate attractive, risk-adjusted returns from a portfolio of prime commercial office assets in established Australian markets.
“Its primary focus will be on office properties located in Sydney, Melbourne, Canberra, Brisbane and Perth that are tenanted by high-quality corporate tenants with strong financial standing and/or government and government-linked entities.
“The Fund is targeting an asset under management of up to A$1 billion (RM2.77 billion) and aims to raise capital commitments of up to A$500 million (RM1.38 billion),” the company said.
It added that the Fund’s tenure is expected to be eight years, with a three-year investment period.
In a separate statement, EWI Capital said the Fund also aims to invest in prime office assets across key Australian capital cities.
It said the Fund is targeting an internal rate of return (IRR) of approximately 10 per cent per annum over its term.
EWI Capital president and chief executive officer Datuk Teow Leong Seng said partnering with TCA as an anchor investor will enable the company to gain valuable insights into property investment.
“At the group level, we will also be able to contribute our extensive expertise and years of experience in both Sydney and Melbourne to enhance the decision-making process.
“This will set us in good standing going forward to be able to independently evaluate and select good direct investment opportunities in the prime Australian office sector, should the opportunity arise,” he said.
The company said the investment will provide EWI Capital with direct exposure to Australia’s prime office market, which currently offers stable, attractive rental yields and potential upside from capital appreciation of the underlying assets.
-- BERNAMA