Sovereign MF appoints distribution guru

Boutique property fund manager and developer Sovereign MF has appointed industry stalwart Colin Owens to build its distribution strategy.

Owens spent last year in a similar position at BDM Direct and prior to that spent five years at Australian Unity running its distribution.

Sovereign managing director Michael Grochowski said the company had been watching Owens for some time with a view to appointing him to the new position.

“His experience and knowledge of the financial services industry will enable us to position and grow our managed funds business quickly and efficiently,” Grochowski said.

The fund manager currently has a number of property projects, including a residential development capital raising that was due to close on January 26.

The Sovereign Tarneit Land Fund plans to raise $7.7 million to develop a 19-hectare block of residential land in Melbourne’s western suburbs.

If the fund succeeds with the capital raising, it will develop the land into 254 residential blocks, which should give investors a forecast return of 18.6 per cent. It is expected the fund will have sold all the blocks by March 2008.

The boutique manager’s previous residential trust raised $2 million for a 130-dwelling development in Melbourne’s inner northern suburbs.

Sovereign is also looking at launching an industrial land development fund based on the same structure as the Tarneit fund.

A value-add fund, which will acquire rural land to re-zone for residential use or seek permits for higher density development, is also planned to be launched shortly.