SINGAPORE, 28 August 2008 - Australian real estate developer, Ashington Capital Ltd (“Ashington”), has launched their third development fund – Ashington Development Fund No. 3 (the “Fund”). With expected returns of 20% IRR and an equity target of A$200 million, the Fund is looking to Asia for equity commitment, a first for Ashington. The Fund targets real estate opportunities on Australia’s east coast, particularly in Sydney and Melbourne, and is set to close by late November 2008. This will be the first time Ashington will look to raise capital outside of Australia and has appointed Jones Lang LaSalle to act as their International Placement Agent.
Jones Lang LaSalle’s Structured Finance team will be assisting Ashington to seek equity capital of up to A$200 million. It will target return net of fees on invested capital for the Fund through development of premium quality across residential, office, hotel, and retail on the eastern seaboard of Australia. The specialized team of real estate investment and finance professionals focuses on providing capital raising and financial advisory services to fund managers and property investors. The Fund will be well positioned to take advantage of the changing market conditions in Australia.
Looking ahead, Craig Anderson, Managing Director of Ashington says, "The current downturn presents attractive opportunities to further expand our established development business in the longer term by capitalising on the adjustments in the Australian real estate market. Ashington's product is ideally structured for the current economic climate, potentially safeguarding the business from any significant impact. Coupled with Jones Lang LaSalle’s extensive experience in arranging equity financing for real estate funds, the Fund presents a unique entry for international investors looking to invest indirectly in Australia."
Hendrik Broeker, Head of Jones Lang LaSalle’s Structured Finance team states, “We are now seeing a re-allocation of international equity towards Australian real estate due to the expected decrease in interest rates, a weaker Australian Dollar and a lowering of the withholding tax for certain foreign investors. At the same time, there remains strong demand for lifestyle and tourism driven product such as residential and hotels. An investment in this fund will allow shareholders to take advantage of this unique set of circumstances in the Australian market as we approach 2009. With Ashington’s track record of delivering excellent opportunistic returns, strong interest in this fund is expected, particularly from international investors looking for opportunistic returns in the Asia Pacific region.”
About Ashington Capital Ltd
Established in 1999, Ashington has a strong history in both property development and funds management, initially through property syndication and retail funds, and now in wholesale development funds. Having raised capital for investment into property development with an end-value of A$1 billion, Ashington has built strong support from institutional investors through their ability to source and secure off-market transactions. Ashington has a successful track record in developing projects to meet financial and time criteria and are skilled in the delivery of environmentally sustainable outcomes.
An Ashington developed project can be identified by its low-supply, lifestyle location, its considered planning and exceptional design. Built using market-leading construction methods and superior materials, they are properties that are acknowledged as being unique and distinctive in the Australian property market.
For further information, please visit www.ashington.com.