Global investment manager Spire Capital has added to its series of Real Estate Opportunity Capital (ROC) offerings with the launch of its USA ROC III Fund in February.
The new fund will consist of a combined property portfolio with an 80 per cent allocation to for-lease multi-family apartment communities and a 20 per cent allocation to commercial office properties.
The new offering is aiming to acquire a portfolio of $2 billion to $2.5 billion in assets that will generate a net internal rate of return of 15 per cent a year, including a predicted 7 per cent to 8 per cent yield for the term of the fund.
“For Australian investors seeking alternative sources of return, uncorrelated to the Australian equity market and wanting to invest in ‘real assets’, the ROC Funds provide a great option to diversify portfolios and achieve high total returns,” Spire Capital director Dale Holmes said.
“Investing in private markets to complement public market exposure in portfolios is a sensible way to manage volatility and to access returns from alternative assets beyond listed equities.”
According to Holmes, part of the Spire USA ROC III Fund’s appeal would be its ability to provide capital growth after the first three years as well as an initial yield.
As an added boost for the new offering, investment research house Zenith has awarded the fund a highly recommended rating.
This follows similar ratings awarded to Spire’s other two funds, ROC II and ROC Seniors, released in 2012 and 2014 respectively.