Opportunistic property fund targeting a net equity IRR of 15% p.a.
Core Property has reviewed the Dexus Real Estate Partnership 2 fund, a closed-ended unlisted real estate fund that targets opportunistic investments for wholesale investors.
The Fund is managed by DREP Investment Management Limited, a wholly owned subsidiary of Dexus (ASX:DXS) an ASX-listed property manager with over $61 billion of assets under management and a track record of delivering trading profits for investors since 2012. The Fund is the second in a series and follows on from the Dexus Real Estate Partnership 1 Fund (DREP1) which launched in 2021.
The Fund is a Total Return style fund with a targeted net equity Internal Rate of Return of 15% p.a. The Manager is targeting this to be achieved through opportunistic investments which include property repositioning, development, special situation opportunities as well as alternative credit. The Manager expects to source investment opportunities within three years, and then look to realising returns within five years thereafter.
The Fund is open to Wholesale investors, who may invest via a feeder fund (with a minimum investment of $250,000) or direct with the Fund (minimum investment of $10M).
Core Property has rated the Fund as RECOMMENDED.