New US-focused property fund launched
A new product has been launched in Australia targeted at investors interested in property opportunities in the US.
The product, the Cashel USA Residential Property Fund, is being marketed as assisting individual investors wishing to take advantage of the opportunities associated with purchasing, renovating and renting out US-based foreclosure (or distressed) properties.
Fund director Jodie Hannaford said she believed the fund's approach offered investors an option to participate in a structured, tax-efficient portfolio with a diverse range of property types and locations, while minimising the risks associated with having all eggs in one basket.
"Opportunities are available now to invest in distressed homes - and with the US housing market showing signs of improvement, the opportunity to get the great deals we are seeing today will be a short-lived one," she claimed.
"We realise the logistics of purchasing an international property portfolio may be hard for mum and dad investors from Australia, and the risk factor higher if they're not able to diversify their investment by location, which is why after successfully establishing two wholesale funds for sophisticated investors, we have created our first retail fund," Hannaford said.
The fund, which recently underwent an independent research review and was given an A+ rating from Property Investment Research (PIR), aims to raise $25 million from investors and a further $25 million in debt to invest in foreclosed, short sale or auctioned residential rental properties in areas where value can still be found, including the South and Midwest of the US.
Recommended for you
The new financial year has got off to a strong start in adviser gains, helped by new entrants, after heavy losses sustained in June.
Michael McCorry, chief investment officer at BlackRock Australia, has detailed how investors are reconsidering their 60/40 portfolios as macro uncertainty highlight the benefits of liquid alternatives.
Having reset its market focus to high-net-worth advisers, Praemium’s administration solution has been selected by Bell Potter in a deal that increases the platform's funds under administration by $6 billion.
High transition rates from financial advisers have helped Netwealth’s funds under administration rise by $3.7 billion in the fourth quarter of FY25.
