Dixon Advisory targets SMSFs with US property fund
Dixon Advisory has launched what it says is a unique US residential property fund for Australian investors, which aims to take advantage of the recovering US economy and the current exchange rate.
The US Masters Residential Property Fund will be listed on the Australian Securities Exchange (ASX), and will invest in residential properties in the greater New York metropolitan region.
Dixon Advisory managing director Alan Dixon said it would be unique in that it will be based on actual investments in American housing, and will be looking to invest in the properties that were hardest hit by the global financial crisis – those housing two to four families, such as duplexes.
The fund expects to deliver returns by targeting an ungeared net rental yield of greater than 8 per cent annualised on the underlying properties. It is expected the fund will also be geared to a maximum of 50 per cent.
Dixon said he thought the fund would be most attractive to self-managed superannuation fund (SMSF) investors, as they had larger sums of money to draw upon and would be seeking higher yield investments.
“Dixon Advisory has 3,700 SMSFs who are clients, and our initial reaction is that many of them are going to be interested. Then of course, we’re going to be advertising to the public and we’re also talking to a number of private wealth groups,” he said.
Dixon said his firm has established an office in New York, which will be staffed by two residential property experts and a chief financial officer for the fund.
The fund will seek to raise $80 million later this month, with the offer expected to close in early June.
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