US Fund Manager Snaps up Altis Property Partners

US-based investment manager Barings has snapped up Australian real estate platform Altis Property Partners.

Sydney-based Altis Property Partners has acquired and developed more than $8 billion of real estate and currently holds a $6-billion portfolio of mainly office, industrial, retail and residential investments.

Founded in 2008 by property veterans Paul Notaras, Shaun Hannah, Alastair Wright and Chris Packett, privately owned real estate investment house Altis has built extensive experience and expertise across the risk spectrum including core, value-add and development. 

Last financial year the group generated almost $100 million of income and access to a local investor base of institutional and high net worth investors.

Altis Property Partners executive director Alastair Wright said its decision to join Barings had been made due to the company’s similar team-based approach, culture and investment philosophy. 

Barings is one of the global giants of investment management with a near $502-billion ($US350-billion) global empire, and it has the heft to take on big global players such as Brookfield and Blackstone as it chases local deals.

The global investment manager has more than 200 investment professionals across 16 offices in nine countries and a major presence in the US and Europe.

Its global real estate platform handles real estate debt and equity of $69 billion ($US48.9 billion).

Barings chief executive Mike Freno said the acquisition would strengthen its local investment capabilities in Australia with it actively looking to expand its footprint in the region.

“Asia Pacific makes up approximately a third of Barings’ third-party assets under management and is expected to be a key driver of growth for us,” Freno said. 

“Barings has successfully led private credit and real estate debt investments in Australia and we’re confident Altis will help us broaden our investment capabilities in the region.”

Upon closing, Barings will absorb 44 Altis directors and staff with expertise in real estate equity and 32 assets—primarily focused on value-add strategies.

Altis has been busy ahead of the deal. In June, it set up a new property platform with Aware Super, which oversees the fund’s directly owned local build-to-rent, industrial and office holdings.

Late last year, Aware and Altis purchased the former Bayview Hotel on Queens Road in Melbourne’s St Kilda Road precinct in a $70-million-plus acquisition where they intend to create more than 300 build-to-rent units.

Before striking the partnership Altis had already partnered with Aware on a $300-million housing development in Liverpool in Greater Western Sydney as well as on a number of industrial projects.