QIC Global Real Estate has raised $1.72 billion in capital over the past 18 months for its property fund, the QIC Property Fund (QPF).
"This is one of the largest capital raisings by an Australian unlisted property fund," QIC managing director of global real estate Robert Carter said.
"The recapitalisation has increased the number of investors in the QPF, which now comprises a mix of domestic and international investors representing superannuation, insurance and sovereign funds.
"It has created a significant balance sheet to acquire new assets and develop existing long-term strategic holdings."
The QPF is an open-ended wholesale property fund, with total assets under management of $5.5 billion as at 30 June 2011.
The fund comprises 10 high-quality regional shopping centres and four CBD buildings.
The recapitalisation was a pre-emptive move by some investors seeking to reposition their portfolios, Carter said.
"On this occasion, we worked closely with clients to achieve this goal in a timely manner, while securing an exemplary mix of new clients with similar objectives to the QPF's longstanding investors," he said.
Clients who repositioned their portfolio during the capital raising remain significant investors in the fund.
Although the recapitalisation project has been completed, Carter said he expected future capital-raising activities in the short to medium term.
"QIC Global Real Estate is actively managing its Australian portfolio and has a significant development pipeline, projected to be valued at more than $2 billion over the next five to seven years, funded almost entirely by equity," he said.
The QPF is focused on retail and commercial CBD assets in Australia's domestic market, with a particular focus on regional shopping centres occupying town centre locations with long-term growth potential, supported by strong trade area demographics, public infrastructure and with nearby land for future expansion.
