Century Funds Management has launched a $250 million open-ended fund with three initial properties and more are in the pipeline.
The fund was formed by stapling together units in two existing Century-managed trusts, Epping Investment Trust and 35 Bessemer Street Unit Trust.
The trusts hold one property each - an $18.2 million office at 3 Carlingford Road, Epping, and an $18.2 million industrial property at 35 Bessemer Street, Blacktown.
A third property, an office tower at 107 Mount Street, North Sydney, was also acquired by the fund for $35.8 million from Mirvac at the end of last year.
Century has raised about $15 million in the first stage of its capital raising and is now seeking out larger assets.
Century chief executive John McBain said the fund would target purchases in the Melbourne and Brisbane CBDs. It would also be after a major industrial asset.
The fund is likely to be limited to investing in metropolitan and CBD locations with a small proportion of out-performing regional centres also to be considered.
Mr McBain said the market was a lot tougher to find value in than it had been, but Century planned to stick with its formula of not mixing passive property and development assets.
It would also still run single asset trusts alongside the open-ended fund.
The balanced fund was attractive to both new and existing Century and Bankminster investors - the pair merged last year.
The forecast cash distributions are 8 per cent a year annualised for the period to June 30, 2006 and8.1 per cent for the year after.
Century manages 22 property funds valued at over $400 million.
