360 Capital REIT Pursues $10 Million Sydney Apartment Investment

360 Capital REIT’s Strategic Move

360 Capital REIT (ASX, TOT) has announced it is currently undertaking due diligence on a potential $10 million structured equity investment in a recently completed apartment complex located in Sydney, New South Wales. This move signals the Fund’s ongoing commitment to expanding its real estate portfolio through selective opportunities that align with its disciplined investment philosophy.

Collaboration with 360 Capital Group

The investment opportunity is closely tied to 360 Capital Group (ASX, TGP), which has entered into a heads of agreement to acquire the property, subject to due diligence and other conditions. The Group plans to raise capital from third-party wholesale investors to co-invest alongside 360 Capital REIT, indicating a collaborative approach to capital deployment and risk sharing.

Financial Implications and Capital Strategy

Importantly, 360 Capital REIT has clarified that it will not undertake a capital raising to fund this proposed investment. Instead, the Fund is leveraging external wholesale investors to participate alongside it. If the transaction proceeds successfully, it is expected to be accretive to the Fund’s earnings, potentially enhancing shareholder returns without diluting existing equity.

Uncertainties and Next Steps

While the announcement is positive, the transaction remains subject to due diligence and other conditions, with no guarantee of completion. Investors will be watching closely for updates on the progress of the acquisition, the finalisation of investment terms, and any impact on the Fund’s earnings guidance. The strategic nature of this deal underscores 360 Capital REIT’s focus on disciplined growth within the Sydney residential market.