Real Estate Capital Partners has launched a new high income property investment fund targeted investors looking to fast-track their retirement and investment savings.
The new Hi Q Fund invests in a diversified range of property assets and uses financial structuring. Hi Q’s investment portfolio comprises 20% unlisted property, 30% actively managed Listed Property Trusts, 25% index LPTs and 25% financial structures.
Hi Q’s forecast distribution per annum is 10.63%.
RECP’s chief executive Andrew Saunders said the fund was launched in response to increasing demand for high performing income investments as returns from traditional asset classes diminished.
“Many investors, particularly those nearing retirement, are looking for strong income producing investments. Due to the current low income returns from listed property trusts and bonds, many are finding it challenging to find sources of consistent, regular income with moderate levels of risk.
“Hi Q was developed to lock in this income stream by securing the income returns, relinquishing a portion of the capital growth, while not increasing the overall level of risk,” he added.
Saunders said the structure of the fund heralded a new style of property investment in Australia.
“This is could well be the first time a derivative product has been combined with Australian real estate investment in this way. Demand is growing from investors, particularly income-driven investors, for products that produce a reliable income stream. Many economists are predicting single digit returns from equity and debt markets for the foreseeable future, so 10.63% is an attractive proposition,” he added.
Hi Q is open for investment and closes on April 12. Minimum investment is $10,000 and the maximum subscription of the fund is $50 million. Pending the successful take-up of the offer, RECP will consider launching a second raising during 2007.
Australian Property Journal
