Funds management firm Equiti Capital Limited has purchased a 168 apartment complex in Texas for $7.35 million to take advantage of favourable US funding conditions.

It is the first investment made by the Equiti US Multifamily Property Fund following a 12-month search in conjunction with US partners, Riverstone Residential.

Debt funding was secured from Fannie Mae adding to the attractiveness of the deal.

"Given its size and the interest rate environment in the US, Fannie Mae is able to provide some of the best funding rates of any lender in the market. This particular facility is a ten year loan with a fixed interest at 4.4%," said Linden Toll, executive director.

"The purchase has been validated by the contract price being considerably under the Lender's appraised valuation plus a locked in currency swap at $1.0685.

The property settled on is Cottages at Bedford located in the mid-cities area between Dallas and Fort Worth.

"Texas is a strong growth corridor in a recovering US economy underwritten by oil and energy, defence, education and agriculture," said Toll.

"The state has a population of 26.4 million people and a GDP that is roughly the size of Australia's at $1.332 trillion."

The Equiti US Multifamily Property Fund was launched in 2011 under the chairmanship of economist and former politician, Dr John Hewson.