Capital came from pension funds in Europe, North America, the Middle East and Australia on the promise of annual returns of 17% to 20%. The spending power will be lifted to more than $6 billion by debt and $400 to $600 million extra pledged by investors, a company source says. The fund, Macquarie Global Property Fund II, was substantially oversubscribed and closed well in excess of the initial $750 million target, the company said.

MGP Fund II consists of two funds, one targeted at Asia and one at Europe. The Asian fund is looking to invest directly in buildings in China, Japan and Southeast Asia, Macquarie officials explain. The focus will be on value-added and opportunistic real estate investments in a wide range of sectors including, office, retail, residential, industrial and logistics. About 35% of the capital is earmarked for Europe, where the fund is looking to buy small European property firms, specifically in Britain, Germany and France.

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