Drapac launches US property funds

Melbourne-based property investment firm Drapac has launched a new product aimed at giving Australian investors access to what it says is the still undervalued US real estate market.

The company announced this week it was launching two investment funds — Drapac Stars & Strips 1 and Drapac Stars & Stripes II — which would be on offer to wholesale investors until 16 August.

Commenting on the product launch, Drapac chief executive and founder Michael Drapac said the funds were unlike anything else in the Australian market at the current time.

Related News:

The company said Drapac Stars and Stripes I and II would aim to acquire portfolios of US real estate in carefully selected target markets across the US — Chicago, Atlanta, Phoenix, Charlotte, Orlando and Los Angeles.

It said these target markets had been chosen as a result of extensive on-the-ground quantitative and qualitative market research.

"These were cities that were severely affected by the Global Financial Crisis, but which possess highly favourable demographic profiles and significant pent-up demand; cities that Drapac expects will outperform the broader market recovery," the company's analysis said.

It said the allocation of property assets between the two investment funds would depend on a number of factors, with the main points of differentiation being asset class, geographic location, and whether the asset was income-producing or non-income producing.




Related Content

Man GLG appoints head of machine learning

The discretionary investment management business of Man Group, Man GLG, has appointed a head of machine learning.The company announced today that it h...more

Sedgwick report overlooks scandal-ridden areas

The limited terms of reference used in Stephen Sedgwick’s final independent review into retail banking remuneration means the review failed to scrut...more

Topdocs releases SMSF deed software changes

Accountants are receiving a multitude of enquires around updating deeds in the lead up to the introduction of the superannuation reform legislation, a...more

Author

Comments

Add new comment