Challenger Financial Services Group has launched the first in a series of opportunistic wholesale property funds.
Challenger Strategic Property Partners 1 seeks to raise $75 million in equity and aims to build a $600 million to $700 million diversified portfolio of Australian property investments.
It has a seed investment in the Waterford County project in Maitland, New South Wales.
"This acquisition further cements the fund's attractiveness, by providing investors with exposure to a long-term investment that offers the flexibility to respond to changing market cycles," Challenger Strategic Property Partners fund manager Karlyn Gasnier said.
The fund's strategy is to partner with geographic and sector delivery specialists, with a focus on residential and industrial land subdivisions, industrial development, rezoning opportunities, medium density and alternative residential development.
The Waterford County project is a residential land subdivision on 242 hectares in the Hunter Valley and represents 40 per cent of the Maitland City Council's Thornton North land release area.
Challenger partnered with County Property Group and civil engineers Daracon Group on the project. Challenger has $46.4 billion in funds under management.
