The newly-established joint venture between the Denison Group and LMW Invest, Denison LMWI, has failed to raise enough capital for its first property syndicate and has withdrawn from buying the property it sought to manage.
The Denison LMWI Property Trust 1 sought to raise $14.8 million for the purchase of an office building at 165 Walker Street in North Sydney.
"While the trust received very strong in-principle support from investors and advisors, full commitment to the trust was not reached," Denison LMWI chief executive Matthew Burrows said yesterday.
"Therefore, we decided to withdraw from the purchase in the interests of our investors."
The trust had received a recommended (lower end) rating from Lonsec in July this year.
At that time, the joint venture was planning to launch two to three syndicates a year, but will now have to revise its strategy.
"We will have to talk with advisers about creating more efficiency in the capital raising area," LMW Invest funds management executive director Michael Este told InvestorDaily.
"We've got a bit of work to do, but we're still committed to the joint venture," Este said.
Burrows met LMW Invest executive director Linden Toll on Tuesday to discuss the future of the joint venture.
"The joint venture is still well intact and we are looking at opportunities as we speak," Burrows said.
