360 Capital Eyes $69M Sydney Apartment Deal with New Capital Raise
360 Capital Group is conducting due diligence on acquiring a $69 million Sydney apartment complex, planning a capital raise to co-invest alongside its listed REIT.
- Due diligence underway for $69 million Sydney apartment acquisition
- Heads of agreement signed but transaction not guaranteed
- Capital raise planned targeting third-party wholesale investors
- Investment to be alongside 360 Capital REIT (ASX, TOT)
- Acquisition aligns with Group’s strategic real estate focus
Strategic Expansion in Sydney Real Estate
360 Capital Group (ASX – TGP) has announced it is in the process of due diligence for a significant acquisition, a recently completed apartment complex in Sydney valued at $69 million. This move signals the Group’s intent to expand its footprint in the competitive Sydney residential market, a sector that continues to attract investor interest due to strong demand and limited supply.
Conditional Agreement and Capital Strategy
While the Group has entered into a heads of agreement, the acquisition remains subject to due diligence and other conditions, meaning the deal is not yet guaranteed. To facilitate the purchase, 360 Capital plans to raise capital from third-party wholesale investors. This capital raise will enable co-investment alongside its listed equity Real Estate Investment Trust, 360 Capital REIT (ASX – TOT), potentially broadening the investor base and sharing risk.
Implications for Investors and Market Position
This proposed acquisition aligns with 360 Capital’s broader strategy of active investment management across real estate equity and credit opportunities in Australia. By targeting a recently completed asset, the Group aims to secure a property with immediate income potential and reduced development risk. The involvement of wholesale investors alongside the REIT could enhance liquidity and provide a diversified capital structure for the transaction.
Looking Ahead
As the due diligence process unfolds, market participants will be watching closely for updates on the transaction’s progress and the outcome of the capital raising effort. The success of this acquisition could reinforce 360 Capital’s position in the Sydney market and demonstrate its capability to execute sizable deals that complement its existing portfolio.
Bottom Line?
The coming weeks will reveal whether 360 Capital can convert this promising opportunity into a strategic asset that bolsters its growth trajectory.
Questions in the middle?
- What are the specific due diligence risks that could derail the acquisition?
- How much capital does 360 Capital aim to raise from wholesale investors?
- What impact will this acquisition have on the Group’s earnings and dividend outlook?
