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Australia’s EG fund gets A$350 million from Dutch pension fund PGGM

By Hui Ching-hoo   
April 12, 2021

Australia’s EG Funds Management says Dutch pension fund PGGM has committed A$350 million (US$269.5 million) to its EG Australian Core Enhanced Fund.

The property fund, which was launched in June 2019, primarily focuses on office, retail, and industrial real estate in Australia. It has raised A$1.25 billion from four Australian superannuation funds since the launch.

“We are delighted to receive the support of PGGM to the ACE Fund. We have fielded significant interest in the strategy from many domestic and offshore investors,” Roger Parker, EG Funds’ executive director, says in a statement on April 8.

The property fund has acquired five assets for A$234 million, and according to the fund management firm, the strategy is to “reposition assets to core and deliver superior risk-adjusted returns”.

“Moving forward, we will focus on inner urban industrial assets, resilient well-located office buildings and non-discretionary retail assets,” Michael Noblet, a fund manager with the company, says in the statement.

PGGM is one of the largest pension funds in the Netherlands, with 268 billion euros ($318.92 billion) of assets as of December 2020, including around 4.6 billion euros allocated to the Australian market.

Last November, the pension fund partnered with another Australian asset manager, Charter Hall, to form an A$800 million fund focused on logistics assets.

Sydney-based EG Funds Management has around A$4.3 billion of assets under management currently.