The Fund aims to provide monthly tax-effective income and long-term capital growth by investing in the healthcare sector underpinned by long term leases to a range of reputable healthcare operators.
The Fund offers investors the opportunity to invest directly in a range of Registered First Mortgages over predominately residential but also limited non-residential property.
A diversified, open-ended first mortgage fund with superior risk adjusted fixed income returns backed by real estate assets (For Wholesale Investors Only).
This is an opportunity for wholesale investors to invest in an irrigated dairy aggregation of two substantial neighbouring properties in the tightly-held Derwent Valley of Tasmania (For Wholesale Investors Only)
The Fund aims to: produce an annual dividend yield, before fees, higher than the underlying index (S&P/ASX 300 A-REIT Index) and provide a total return in excess of the CPI + 3% (before fees) over rolling 5 year periods.
The Fund will acquire and manage disability accommodation properties that meet the specific requirements of NDIS participants (For Wholesale Investors Only)
A contributory mortgage fund offering wholesale investors the opportunity to invest directly in selected registered First Mortgages over predominately residential but also limited non-residential property in South East Queensland.
The Fund invests in mortgages with typical loan amounts between $3M to $15M secured via a mortgage over real property located within metropolitan Sydney, Brisbane or Melbourne (For Wholesale Investors Only).
Australia's only high conviction A-REIT fund with an ESG focus. A Property Fund focussed on capital security, income yield, and sustainable growth that seeks to exploit market inefficiencies by employing an active, value based investment style.
Invest in exclusive off market properties at up to 15% below market value, no acquisition costs or holding costs. and you can start from as little as $1,000.
Invest in a growing portfolio of high-quality government leased assets.
Share in development profits earning 16% - 23% pa
The fund’s objective is to contribute towards a much needed supply of Specialist Disability Accommodation (For Wholesale Investors Only).
The Fund offers investors the opportunity to invest directly in a range of Registered First Mortgages over predominately residential but also limited non-residential property.
Defensive childcare asset underpinned by a 15 year lease to one of Australia's most successful childcare operators. The Fund offers a favourable investment structure providing potential for capital growth.
The Trust is a fixed term, unlisted property fund that is forecasting a distribution yield of 8% pa and targeting an IRR of 11% to 15% pa (not guaranteed). (For Wholesale Investors Only)
Although many Australians are intrinsically connected to the real estate market through the ownership of their homes or investment properties, the realm of property investment extends much further than just direct residential ownership.
Real Estate Investment Trusts (REITs) and property funds present compelling opportunities for investors looking to diversify their portfolios in income-generating assets. These investment opportunities also offer the advantage of sidestepping the typical expenses and administrative burdens of direct ownership, providing a streamlined approach to property investment.
The traditional approach to investing in real estate, involves purchasing a residential or commercial property with the intention of generating income or achieving capital growth. However, the modern investment landscape also offers a number of alternatives beyond direct ownership.
Property funds, also called real estate funds, are collective investment funds into which investors pool resources to invest in various property-related assets.
| Types | These can be listed (traded on stock exchanges) or unlisted (not publicly traded). |
| Assets | They can invest in a range of assets including direct real estate, mortgages, or securities related to real estate, such as shares in other property companies or trusts. |
| Strategy | The focus of a property fund can vary widely – from commercial properties to residential or a mix, from income generation to capital appreciation, or a blend of both. |
| Liquidity | Liquidity depends on the type of property fund. Listed funds offer higher liquidity, whereas unlisted funds might have longer lock-in periods or less frequent redemption opportunities. |
Australian Rest Estate Investment Trusts, also called A-REITs in Australia, are trusts listed on the Australian Securities Exchange (ASX), providing investors with an avenue to access real estate assets without direct ownership.
| Types | A-REITs are listed on the ASX and are publicly traded. There are three main types of REITs in Australia, including equity REITs, mortgage REITs and hybrid REITs. Each takes a different approach to ownership of assets and sources of income. |
| Assets | Their returns are mainly derived from rental income and potential capital growth when properties are sold. |
| Taxation | Typically, A-REITs distribute most of their taxable income to investors, which means they can avoid paying corporate tax. Tax liability then transfers to the unit holders based on their individual circumstances. |
| Liquidity | Given their listing on the ASX, A-REITs offer liquidity to investors, allowing them to buy or sell their holdings relatively easily. |
Property syndicates involve a collective of investors pooling resources to jointly invest in property, especially in larger ventures that might be inaccessible individually. Often set up as unit trusts, the stake each investor holds corresponds to their contribution. Managed by an overseeing entity, syndicates offer diversification and access to sizable projects.
| Structure | Syndicates can be structured in various ways, but commonly, they are set up as unit trusts, with each investor holding units proportional to their investment. A manager or management entity typically oversees the syndicate's operation. |
| Risks | While syndicates provide a way to diversify individual risk and access larger projects, they also come with their own challenges. Returns depend on the success of the chosen property or project. Moreover, the syndicate's decision-making is collective or controlled by the manager, so individual investors have less direct influence. |
| Liquidity | Syndicates might have a defined investment horizon, making them less liquid. Exiting early could be challenging, depending on the syndicate's structure and agreement. |
There are four main types of properties you can invest in:
When weighing A-REITs against property funds or deciding among different trusts or funds within these categories, these factors can guide an informed decision-making process:
The main characteristics of property investments include:
Investment in property funds and A-REITs involves a number of key risks including:
Investing in property through funds or A-REITs can be a strategic way to access the real estate market while mitigating some of the challenges associated with direct ownership. Whether considering A-REITs, property funds, or unlisted trusts, it's crucial to conduct thorough research, understand the investment's strategy and risks, and align it with your financial objectives and risk tolerance.
By diversifying your portfolio with real estate investments, you can potentially benefit from income generation, capital appreciation, and professional management, all while spreading risk. However, like any investment, there are no guarantees, and it's essential to stay informed about market conditions to ensure you make informed decisions.
A property fund and a property trust are similar in that they both pool investors' money to invest in property assets. The main difference is in the legal structure. Property trusts are structured as trusts, while property funds can have various legal structures, such as unit trusts or managed funds.
No, property funds and trusts cater to a wide range of investors. While some may target institutional or high-net-worth investors, many are open to retail investors with lower minimum investment requirements.
Returns typically come from rental income, capital gains on property sales, or a combination of both. These returns are distributed to investors in the form of dividends or distributions.
Listed property trusts or funds are publicly traded on stock exchanges, offering liquidity. Unlisted ones are privately held and may have lower liquidity. Listed property trusts are subject to stock exchange regulations, while unlisted ones have other regulatory oversight.
Yes, property funds and trusts can be excellent diversification tools. They allow you to access real estate assets without the full ownership burden and can complement a portfolio of traditional stocks and bonds.
Assess risk factors such as the fund's or trust's investment strategy, leverage levels, fees, and the track record of the management team. Diversification across properties and regions can also mitigate risk.
Tax treatment varies by country and the specific structure of the fund or trust. In many cases, you may be subject to capital gains tax and income tax on dividends or distributions. Consult a tax professional for personalized guidance.
This article contains information of a general nature only, and should not be regarded as advice, either general or personal. Anybody considering investing in property funds or REITs should seek professional financial and legal advice prior to making investment decisions.
