APN Funds Management has launched a $18.2 million retirement property fund which eventually will be listed on Austock’s exempt market.
The fund will consist of five Victorian retirement villages, owned by Prime Life.
They will cost $26 million, of which $9.5 million will be borrowed on a fixed rate for six years.
Austock corporate director Michael Daddo says the fund is the first on the exempt market and is investing in the growing market of retirement properties.
“With a yield of 9.45 per cent payable monthly, and indexed to CPI, the units are likely to be attractive to retirees and investors seeking a high-yielding secure investment,” he says.
The minimum investment is $5000 and the 9.1 million units are priced at $2 each.
The fund will have a maximum life of 10 years.
Austock has also launched an on-line broking service which it claims has the lowest minimum brokerage rate in Australia.
Trades can be initiated from as low as $21 for transaction under $20,000 and investors can settle their accounts using Visa or Mastercard. There is also a monthly service fee of $35.
For those investors wanting to maintain a cash account, Austock is offering two choices Bendigo Bank or Macquarie.
Research for the service will be provided by Investor Web which reports on 600 equities and 1500 managed funds. The back office operation will be handled by Australian Clearing Services.
Bendigo Bank managing director Rob Hunt says WebStock was a good example of how local financial service providers can put together an integrated package.
“The package is a first-class example of like-minded enterprises pooling their specialist skills and utilising technology to offer an integrated service beyond conventional market boundaries,” he says.
