Avignon Capital, the London-based property investment firm and asset manager, has received a new mandate to invest in Australia, where it will focus on office real estate and hotels in Sydney, Melbourne, and Brisbane.
“We are excited to announce our expansion into Australia, a market that we have identified as a prime investment opportunity. Australia’s vibrant, modern economy provides a perfect platform for us to invest during this growth phase,” said Patrick Flaton, chief financial and operating officer at Avignon Capital.
Having previously invested exclusively in Europe, Avignon Capital has enjoyed its most successful financial year to date, with 18 acquisitions across Europe. Disposals have included a number of triple-digit returns, such as the sale of its Copenhagen retail portfolio, which secured 154% return on equity.
Australia’s stable macroeconomic and investment climate makes it an ideal destination for Avignon Capital to continue its business expansion. The Australian investment market experienced a robust 2016 and 2017, and the trend shows no sign of ending.
The firm says Sydney and Melbourne’s office real estate markets are particularly attractive, as well as being the best performing in the country. According to PricewaterhouseCoopers, Sydney and Melbourne’s office real estate markets have the highest projected rental growth rates of any city in the Asia-Pacific region, at 3.8% and 3.7% respectively.
Australia’s hotel real estate market also provides strong opportunities for investment. Sydney and Melbourne boast more than 80% hotel occupancy rates, and these rates have grown over the past decade as tourism continues to grow.
International arrivals to Australia are expanding at over double the 3.9% growth rate for global outbound travel, and since 2009, the number of international visitors to Australia has grown by 44%.
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