Blind raising vote of confidence in fund by lindayy

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									The Australian Financial Revlow
Thursday 12 July 2007 • www.afr.com
Blind raising vote of
confidence in fund
Forty-five per cent of the trans¬
actions undertaken by Ray White
Ray White Invest, the property funds Invest are sourced from the broader
management arm of real estate heavy- Ray White Group,
weight Ray White, has raised another The White family, which controls
development fund, taking total rais- Ray White, has also taken a 10 per
ings since inception in 2001 to more cent stake in PAF.
than $400 million.	The other backers of PAF are
In the latest transaction, Ray White substantial private investors, including
Invest raised $28 million in four weeks some of the franchisees from the Ray
for the Priority Access Fund, a vehicle White network, as well as one Quecns-
that will invest in value-adding and land institution,
opportunistic property plays.	Ray White Invest backs projects
PAF could fund^property projects through mezzanine funding, a profit-
worth up to $125 million but, unlike share arrangement or straight equity,
earlier Ray White Invest offerings, the PAF will inject $8 million into an
money was committed before specific industrial property development - a
investments were identified.
The chief executive of Ray White
Invest, Dan White, said the "blind"
raising was a "vote of confidence" in
his group's track record over the past
six years.
In that time, Ray White Invest has
helped fund property projects worth
$1.8 billion and delivered returns to
investors of'more than 19 per cent -
after fees but before tax.
Ray White is the only major real
estate chain in Australia to pursue
funds management, though the big
commercial agencies such as
CB Richard Ellis and Jones Lang
LaSalle have substantial funds
management operations elsewhere in
the world.
"It fits in well," said Ray White
chairman Brian White.
"The impact on our business is
quite significant.
"We become property people	_
rather than just agents and our people of 32 professionals with offices in
talk more broadly to their clients." Sydney, Melbourne and Brisbane."
Robert Harley
"We become property
people rather than
just agents."
refurbishment and land subdivision —
in the Queensland regional centre of
Toowoomba by the Dimensions Prop¬
erty Group.
Dan White said Dimension, which is
operated by Neville Jensen and Tony
Havig, was a "long- standing develop¬
ment partner" of Ray White Invest.
PAF will inject S6 million into the
repositioning of two shopping centres,
the Underwood and Sunshine Market¬
places, by the Blair Group.
"This is our core market and these
are good deals," Mr White said. "One
of our challenges is to keep pace with
these guys.
"Ray White Invest now has a team

								
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