|US Multi-Family Property Fund Enters Market|
Property fund manager Equiti Capital has partnered with United States firm Riverstone Residential to provide the US Multifamily Property Fund to the domestic investment market.
"With regard to our US partners, we extensively researched the specialist managers in this field and we believed Riverstone provided an excellent fit to our requirements. Their experience, reach and focus on compliance and transparency means that we have every confidence that they will manage our assets to perform at the highest level," Equiti Capital director Linden Toll said.
Riverstone manages a portfolio of multi-family assets valued at over $15 billion and is the third largest manager of its kind in the US.
One of the driving factors in launching the US Multifamily Property Fund in Australia is the growing demand from local investors for US property. Through the launch of the fund, Equiti is looking to provide a less risky avenue for this type of investment to take place.
"In the past 12 months, Australian investors have poured $600 million into US housing. Unfortunately, the lure of cheap property and a strong Aussie dollar may not produce the financial windfall that many anticipate because the properties are often not what they appear to be," Toll said.
"Multi-family housing is an institutionally-run investment asset class with advanced systems and processes to achieve strong income returns. We believe partnering with a qualified team such as Riverstone, with extensive experience in the local market, can provide an added measure of security for investors."
In addition, the US multi-family rental property sector is presenting good investment opportunities due to the fact both baby boomers and generation Y individuals are currently less likely to live in their own home.
The minimum investment amount for the Equiti Capital US Multifamily Property Fund is $10,000 and it is open to investors now.
The opinions expressed do not constitute investment advice and specialist advice should be sought about your specific circumstances.
Published on our website on Apr.1, 2011