New ZACD fund to scour for data centres, discounted luxury homes

Singapore

ZACD Group has launched a second fund under the Asia Pacific Real Estate Opportunistic Fund (ARO) series to scour for luxury homes and data centres in Singapore as well as student accommodation in Australia.

For luxury residential units here, it is looking to buy them in bulk at deep discounts of more than 15 per cent below market value.

ARO Fund Series II has an equity target of S$300 million, with ZACD contributing 10 per cent of the sum and a potential gearing of up to 70 per cent. It promises investors a fixed annual dividend of at least 3.5 per cent and targeted total returns of about 15 per cent per annum.

More than half of the target equity for Fund II is already raised. Its launch followed the success of Fund I, which delivered an average 30 per cent internal rate of return (IRR) per annum, above its promised 15 per cent IRR target, from its investments in residential project RiverParc Residence, industrial…