Independent boutique fund manager Spire Capital has announced plans to launch a United States commercial office fund in the Australian investor market.
The managed fund will be offered in conjunction with Spire Capital’s US managing partner, Bridge Investment Group.
Commenting on its next initiative, Spire Capital director and head of funds management Matthew Cook said: “Our partner has a successful 30-year history of value-add strategies in commercial office and are attracted to the opportunities in the sector.
“The supply/demand imbalance, particularly in prime suburbs of large secondary cities in the US, provides opportunities to deliver our investors with high income and growth over the next five years.”
News of the fund launch comes as the boutique manager also announced it was closing its US Seniors Housing Fund II to capital inflows, having reached the hard-cap target.
The US Seniors Housing Fund II, which aims to provide investors with an internal rate of return of 15 per cent, comprised of both capital growth and income, managed to raise $110 million.
Spire Capital director Dale Holmes attributed the success of the capital raising for the fund to the demand that was coming from the US senior community, as well as the easy-to-understand investment philosophy behind the offering.
“An ageing demography drives demand for quality accommodation and care, whilst the existing supply of inventory was largely built decades ago requiring an upgrade to amenities,” Holmes said.
“In addition, ownership in the sector is currently fragmented but will increasingly become institutionally owned, requiring specialist firms to consolidate and stabilise large portfolios for sale.”
Spire Capital has now raised over $420 million across a series of US property funds.