Sydney-based private equity group Wentworth has topped out its newest private equity real estate fund at $350 million, or $100 million more than originally planned, to take advantage of emerging opportunities across a “dislocated” property market.
Investor support for the fund, which exceeded the initial target of $250 million, has been heralded by the group as a show of confidence in its contrarian investment philosophy despite a challenging fundraising environment.
Wentworth, which was founded in 2019 by former Blackstone and Mirvac Group (ASX: MGR) executives, has already deployed half of the funds raised alongside co-investments worth a combined $600 million secured through off-market transactions.
The Wentworth Real Estate Private Equity Fund I has been backed by institutional investors including pension funds, sovereign wealth funds and family offices who are keen to tap into Wentworth’s “opportunistic” investment strategy.
The group notes that a significant portion of the commitments were received from existing investors who have backed seven previous investment vehicles established by Wentworth.
“We're grateful for the continued trust our investors have placed in us,” says Wentworth’s CEO Alastair Nash.
“Since founding Wentworth in 2019, raising our first discretionary real estate private equity fund has been a key focus.
"The fund’s investment strategy will be a continuation of our proven sector-agnostic approach, which allows us to capitalise on market inefficiencies wherever they occur, focusing purely on the best risk-adjusted returns regardless of asset class.”
After negotiating $2.6 billion in transactions since 2019, Nash says Wentworth is “well-positioned with significant dry powder to capitalise on the opportunities we're seeing in today's dislocated market”.
Wentworth’s existing portfolio includes industrial land, a wholesale residential portfolio, residential investments and life sciences assets.
Among its key assets are the former CSIRO headquarters in North Ryde, a Sydney University life sciences hub and Long's Lane Heritage Terraces at The Rocks, all of which were acquired through off-market deals.
In partnership with Assembly Funds Management, Wentworth last year acquired Domain’s Sydney headquarters 100-130 Harris Street in Pyrmont for $229.3 million at a steep discount to the original purchase price of $327.5 million by property investor Dexus (ASX: DXS).
Wentworth has specific ambitions to build a $1.5 billion life sciences and innovation portfolio as well as a last-mile logistics portfolio totalling $2 billion.
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