St Hilliers Funds Management Limited (a subsidiary of St Hilliers Property Pty Limited)
is raising $100 million in equity with the launch of its third Enhanced Property Fund.   

St Hilliers Property Chief Executive, Tim Casey, said St Hilliers Enhanced Property Fund No.3 offered investors a unique opportunity to participate in the wholesale investment offering of St Hilliers Property's venture with Macquarie Bank Limited.

Macquarie acquired a 49% interest in St Hilliers Property in November 2006, recapitalising the business to facilitate growth plans. Mr Casey remains the major shareholder of the new venture.

"We believe investors in Fund No.3 will benefit from St Hilliers Property's proven track record of creating a quality deal flow of development and value-add opportunities, which is complemented by the Macquarie Group‚Äö?Ñ????ë?¬•s real estate and funds management experience," Mr Casey said. 

St Hilliers Enhanced Property Funds ("Funds") are unlisted property investment vehicles offering a target return of 15% pa to wholesale investors. Fund No.3's strategy is to invest in tenanted properties that provide an immediate income stream and then apply St Hilliers Property's expertise to maximise the investment value of the property via refurbishment, redevelopment or repositioning in the marketplace.  

Three investment properties, each with strong potential for enhancement, have been secured to seed Fund No.3. Two of the properties are industrial complexes located in Sydney and the third is a commercial building situated in the Melbourne CBD.

General Manager of St Hilliers Funds Management, Nicholas Ridgwell, said: "The properties have the potential to generate higher returns through future development or repositioning. We have the added bonus of generating an income from the existing improvements on these sites while we plan their redevelopment"

"The acquisition of these properties further demonstrates St Hilliers ability to identify investment opportunities and gives investors in the Fund the added benefit of having over 25% of the target equity already allocated," he said. 

St Hilliers first two Funds were successfully closed and fully allocated at an early stage and enhancement strategies for these Funds are well underway. 

Mr Casey believes the launch of the third Fund is the commencement of a new and exciting period in the growth of St Hilliers Property, which will see it become a significant operator in property funds management and development.