Madgwicks are delighted to have been the legal adviser for the recent launch of the Australian Residential Property Fund (ResiFund).
This highly innovative fund allows retail and wholesale investors to invest in a diversified portfolio of residential properties across Australia without the substantial equity investment, borrowings or investment risk associated with buying investment properties directly.
Involving nearly one year of work in structuring and implementing the Fund, which included obtaining ASIC relief for the stapled-entity structure, Madgwicks Partner Rick Goldberg said: “It was a great opportunity to convert a highly efficient but complex investment structure for our client, into an Offer document which is very simple for the ResiFund investors, the end users, to understand.”
ResiFund CEO Matthew Lewison said the current timing for the launch was excellent. “We are already buying into the Melbourne and Brisbane residential property markets where there is record population growth, very low vacancies (Melbourne at 1.6%) and rental growth averaging 1.5%. That is now already giving rise to Fund being on target to achieve a 10% return in the first 12 months, representing a substantial outperformance of the market.
“ResiFund is investing in types of residential property unavailable to most investors and this is drawing interest from not only retail investors but from wholesale and institutional investors as well.”
ResiFund is one of Australia’s most successful residential investment groups with its parent company acquiring over 1,000 properties in the 10 years prior to the launch of ResiFund, and achieving average unleveraged returns of 10.8% p.a. They are currently managing over 900 properties and have been the manager for 25 property funds and joint ventures.
If you would like further details on Madgwicks’ funds management services, please contact Rick Goldberg on +61 3 9242 4744 or via email at firstname.lastname@example.org. If you would like further details on the ResiFund, please contact Warren Boothman on 0439 586 964 or via email at email@example.com .