The fund, launched Wednesday, targets “opportunistic” investments into the residential sector, Future Estate’s managing director Ben Anderson told SMSF Adviser.
“The primary investment thesis for the fund is to take advantage of the capital shortage to the construction and development sector,” Mr Anderson said.
“[The fund] will make strategic and opportunistic investments into carefully selected residential projects at various stages of the development cycle where significant value can be extracted from the investment.”
The fund targets retail, wholesale, domestic and offshore investors, Mr Anderson said, and is available to the retail market to cater to SMSF investors.
“There is overwhelming demand and interest from [SMSFs]; they certainly see the investment thesis and the opportunity,” he said.
“It’s just very difficult for your average SMSF to be able to participate in the sector because it’s largely tightly held by a small number of family offices and private investors and it’s not really available via any other investment vehicle in the market, so that’s simply what the fund is trying to cater to.”