Sovereign launches aged care fund
Boutique property manager Sovereign MF has joined forces with Victorian aged care operator Viculus to launch a new fund specialising in the sector.
The fund will be known as the Sovereign Viculus Aged Care Fund, and will purchase up to $100 million of properties for the offering.
The fund manager, through the new fund, will own the properties, while Viculus will be the operator of the aged care facilities.
Sovereign managing director Michael Grochowski said the fund would allow Viculus to expand its business in the aged care sector.
“The unlisted fund will give investors exposure to an asset class that previously had limited opportunities for investor participation, and it is a sector that has huge growth potential with Australia’s increasing ageing population,” he said.
“The fund will offer 9 per cent plus yields, tax advantaged distributions and some liquidity through bi-annual redemption offers.”
Grochowski said the long leases on the properties and secure income was an additional attraction for investors.
The new fund will be launched in the first quarter of the current financial year.
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