Kuala lumpur: EWI Capital Bhd’s wholly owned subsidiary, EWI Investment Holdings Ltd, has made a strategic shift towards investment holding with a commitment of A$100 million (RM276.5 million) as an anchor investor in the TrustCapital Australian Office Fund No. 3 (Fund).

According to BERNAMA News Agency, the Fund will be managed by Singapore-based investment and advisory firm TrustCapital Advisors Investment Management Pte Ltd (TCA), which has a track record in acquiring, managing and divesting Australian office properties. In a filing with Bursa Malaysia, EWI Capital stated that the Fund’s objective is to generate attractive, risk-adjusted returns from a portfolio of prime commercial office assets in established Australian markets.

The Fund will primarily focus on office properties located in Sydney, Melbourne, Canberra, Brisbane, and Perth. These properties will be tenanted by high-quality corporate tenants with strong financial standing and/or government and government-linked entities. The Fund aims to manage assets up to A$1 billion (RM2.77 billion) and seeks to raise capital commitments of up to A$500 million (RM1.38 billion).

EWI Capital disclosed that the Fund’s tenure is expected to be eight years, with a three-year investment period. In a separate statement, the company mentioned that the Fund also aims to invest in prime office assets across key Australian capital cities and is targeting an internal rate of return (IRR) of approximately 10 per cent per annum over its term.

Datuk Teow Leong Seng, EWI Capital president and chief executive officer, remarked that partnering with TCA as an anchor investor will provide valuable insights into property investment. He emphasized that at the group level, EWI Capital will contribute its extensive expertise and years of experience in both Sydney and Melbourne to enhance decision-making processes. This partnership is expected to aid EWI Capital in independently evaluating and selecting direct investment opportunities in Australia’s prime office sector.

The company highlighted that the investment would provide EWI Capital with direct exposure to Australia’s prime office market, offering stable, attractive rental yields and potential upside from capital appreciation of the underlying assets.