Becton builds mezzanine fund

Property group Becton has launched the first retail mezzanine fund for property investment aimed at the self-managed superannuation fund market, but denies the move is designed to take advantage of strong investor interest in the sector.

General manager David Hinde says while the roll out of the Becton Developments Income Fund and plans to launch another property syndicate in August are the result of strong interest in property, the launch is not a ploy to simply increase funds under management.

“We are not about producing product for getting funds in. In the income fund, we will not be taking over-subscriptions until we can use the monies,” Hinde says.

Melbourne-based Hinde says the investment side of Becton already receives 90 per cent of its fund inflows from this sector.

The income fund is open-ended and initially aims to raise $20 million to fund a number of investments by the development arm of Becton.

Projected returns are forecast to be 9.25 per cent in the first couple of years.

To make the fund more liquid for investors, Becton is offering 100 per cent redemption of units annually, subject to there being adequate funds. Hinde says the redemption offerings will commence after about two years.