s property outfit Realside Financial Group has locked in $60 million in commitments for its second industrial assets fund.The Realside Ovest Industrial Fund No 2 follows a similarly sized first fund raised last year. Both have the same mandate - to buy up older buildings with refurbishing potential or vacant land zoned for industrial development.
Vonic would take his picks from assets in Perth and Adelaide, where he thinks valuations relative to potential rental income are way better than on the East Coast. He also wants to stay away from already built industrial properties, preferring to build his own stock because the firm reckons a flood of money is chasing ecommerce related industrial assets in crowded East Coast spots like Western Sydney and tightening cap rates.
Fund 2 made its first close at $30 million in December and has ploughed it into three properties, with investments for the remaining money currently under due diligence.Potential investors were told to expect a 14 per cent internal rate of return and 8.5 per cent average cash yield over five years. Investors were reminded Realside’s first Ovest industrials fund raised last year deployed all the money raised within six months. It invested in six properties and 89 per cent of the portfolio was pre-leased.is an award-winning journalist who writes on technology and healthcare from our Melbourne newsroom.