Ashington targets $240m for Australia fund(2)

The Australian development firm is raising its third institutional opportunity fund targeting the east coast of Australia. It is expected to close on A$200m towards the end of the year.

Australian real estate development firm and fund manager, Ashington Capital, is targeting A$200 million ($164 million; €115 million) for its third opportunistic real estate vehicle.

Ashington is expected to close the Ashington Development Fund III by the end of November, according to a statement from Jones Lang LaSalle.

This is the first time Ashington has sought equity commitments outside Australia. Jones Lang LaSalle is acting as placement agent.

The fund will target real estate developments on Australia’s east coast, particularly in Sydney and Melbourne. Craig Anderson, managing director of Ashington, said the fund would take advantage of “adjustments” in the Australian property market following the credit crunch.  The fund is expecting IRRs of around 20 percent, the statement added.

Ashington closed its second real estate fund on A$80 million of capital in September last year.