Tony Pitt's 360 Capital Group last night confirmed that it had completed a $155 million raising as investors welcomed the chance to invest in a trust focused on suburban office buildings.
Investment bankers Moelis and CIMB drew stronger-than-expected interest from institutions and Morgans provided strong retail bidding for the fund, as $125m was raised.
In line with 360 Capital's co-investment philosophy, it committed $30m to the raising as part of its long-term strategy.
Proceeds from the raising are to go to settling two acquisitions by the fund -- 154 Melbourne Street, South Brisbane, for $73.5m, and 438-517 Kingsford Smith Drive, Brisbane, for $62m -- and to help restructure of the currently unlisted fund.
The fund will have gross assets of $239m and will be a major part of 360 Capital's expansion plans alongside the separately listed 360 Capital Industrial Fund, which yesterday unveiled strong revaluations.
The 360 Capital office fund will start with just four assets in Sydney, Canberra and Brisbane, but could find rich pickings in its target markets of A-grade suburban and B-grade city office buildings worth between $30m and $100m.
Mr Pitt said "support from existing and new institutional and retail clients was strong" as they recognised the fund's attractive investment metrics and the potential upside from the residential opportunity on the fund's tower in the Sydney suburb of Burwood.