360 Capital Launches Private Equity Fund with $49.9M Sydney Apartment Deal
360 Capital Group has launched its new private equity fund, marking its debut acquisition with a $49.9 million Sydney apartment complex purchase. The fund combines equity from wholesale investors, bank debt, and structured equity to finance the deal.
- Launch of 360 Capital Private Equity Fund 1 (PEF1)
- First acquisition – $49.9 million Sydney apartment complex
- Raised $7.75 million equity from wholesale investors
- Financing includes bank debt and $10 million preference equity from 360 Capital REIT
- Strategic move to expand real estate investment portfolio
A New Chapter for 360 Capital Group
360 Capital Group (ASX, TGP) has officially launched its latest real estate private equity vehicle, 360 Capital Private Equity Fund 1 (PEF1), signaling a strategic expansion in its investment approach. The fund's inaugural acquisition is a brand new apartment complex located just six kilometres from Sydney's central business district, acquired for $49.9 million.
Details of the Acquisition and Fund Structure
The apartment complex comprises a mix of one, two, and three-bedroom units, positioning it well to attract a diverse tenant base in a competitive Sydney market. PEF1 has successfully raised $7.75 million in equity from wholesale investors, which, when combined with bank financing and a $10 million preference structured equity contribution from 360 Capital REIT (ASX, TOT), completes the funding package for the acquisition.
Strategic Implications and Market Positioning
This acquisition marks a significant milestone for 360 Capital Group as it diversifies its portfolio through a dedicated private equity fund structure. The single-asset focus of PEF1 allows for concentrated management and potentially enhanced returns, while leveraging the Group’s expertise in real estate equity and credit opportunities. The involvement of 360 Capital REIT in providing preference equity also underscores internal confidence in the asset and fund strategy.
Looking Ahead
While the initial capital raise and acquisition set a solid foundation, questions remain about PEF1’s future pipeline and how the fund will scale its portfolio. The Group’s ability to attract further investor commitments and identify complementary assets will be critical to the fund’s long-term success. For investors, this launch offers a new avenue to participate in Sydney’s residential property market through a professionally managed private equity structure.
Bottom Line?
360 Capital’s new fund launch and first acquisition set the stage for a focused push into Sydney’s residential market, with eyes on scaling and delivering returns.
Questions in the middle?
- What is the planned timeline and target size for further capital raising for PEF1?
- How does 360 Capital intend to manage and grow the single-asset fund beyond this initial acquisition?
- What are the expected financial returns and risk profile for investors in PEF1?