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.
Recommended for you
Sequoia Financial Group has announced it is selling off its Informed Investor subsidiary which it acquired in April 2022.
Wealth Data has examined which advice business model has seen the most growth since the start of the year including those that offer holistic advice.
Research conducted by Elixir Consulting and Lonsec has quantified the efficiency gains of using managed accounts in financial advice practices in hours per week saved.
With only one-quarter of advice practices actively seeking feedback from clients, the Financial Advice Association Australia has emphasised why this is a critical tool for client retention.