Aust Unity launches retirement village fund
Australian Unity Investments (AUI) has launched a fixed income product aimed at funding a continued expansion into the retirement living sector by parent Australian Unity Group (AU).
The so-called Retirement Village Investment Note will pay a quarterly fixed rate of interest across a selection of three fixed terms — three years at 8.5 per cent per annum, five years at 8.75 per cent, or seven years at 9.0 per cent.
The minimum investment amount for each investment term is $5,000, with an issue price of $1 per Note.
The underlying assets of the Note are AU’s three retirement villages — the Willandra Village and Willandra Bungalows in NSW and the Walmsley Friendship Village in Victoria.
The income from the retirement villages, which are also managed by AU, will be used to fund AUI’s obligations to investors under the Note issue.
AUI head David Bryant said the Note has been designed to “offer stable returns supported by solid underlying assets to investors, such as retirees, who are looking for a fixed income over a fixed term”.
“Retirement village investment is less exposed to the impact of economic factors such as changes in employment levels — particularly when compared to other property-based investments.
“We believe the Note will appeal to investors as an alternative income source, based on the income being generated from retirement villages, coupled with the attractiveness of the returns.”
Recommended for you
Unveiling its performance for the calendar year 2024, AMP has noted a “careful” investment in bitcoin futures proved beneficial for its superannuation members.
SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positive” returns.
The second tranche of DBFO reforms has received strong support from superannuation funds and insurers, with a new class of advisers aimed to support Australians with their retirement planning.
The financial services technology firm has officially launched its digital advice and education solution for superannuation funds and other industry players.
