Realside launches property fund

Realside Financial Group has launched another property fund via its investment management platform Ovest Industrial, following the success of its initial fund.

Investment manager Ovest Industrial is a joint venture between Perth and Sydney-based Realside Property and Perth private family business Hero Properties, led by Julie Drago.

The latest fund, Ovest 2, will acquire vacant land zoned for industrial development and older-style industrial buildings that can be refurbished, across major capital cities.

It will target an initial return rate of 14 per cent and an average yield of 8.5 per cent per annum over five years.

Ovest 1, launched in May, has fully deployed about $60 million raised across six industrial properties in WA, with an expected end value of about $150 million.

Realside is looking to raise a similar amount, that is, $60 million, through Ovest 2. 

Ovest director Mark Vonic said the timing of Ovest 1 and now Ovest 2 capitalised on the continued strong tenant demand for high-quality industrial property in major capital cities.

“We believe that the potential development upside from a build-to-own strategy offers significant appeal over acquiring industrial grade properties given the current climate of compressed cap rates,” he said.

Ovest Industrial chief executive Julie Drago said the investment group continued to see attractive opportunities in the market.  

“We are pleased to be able to offer investors an opportunity to participate in our vision of developing high-quality industrial properties to own for the long term,” she said.