Challenger opens new property trust
Financial services group Challenger International has bought its first Melbourne property for $22.3 million, as part of a new property syndicate for retail investors.
The Trust will raise $13.7 million from unit holders to fund the acquisition of the property, and the expenses of establishing the Trust, and will borrow the remaining amount.
Challenger property services director John Foulsham says the Trust would suit investors looking for a regular income stream with tax advantages and capital growth prospects.
Foulsham says the group expects to sell the property in five years and distribute the proceeds of the sale to investors.
He says the Trust would also consider enhancing the value of the 11-storey building, located on the south west side of the city, through residential development, which has a tenant register that includes several multi-national companies.
Challenger currently runs six single property syndications, all commercial properties and collectively valued at more than $200 million.
The group's success in the Sydney and Brisbane commercial property markets had encouraged it to seek new opportunities in Victoria.
Challenger has more than $7 billion of assets under management, of which $2 billion is invested in property.
AUTHOR
Kate Kachor
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