Prime Financial Group has launched a commercial property fund, Protus Prime, with SMSF investors in mind.
Speaking to SMSF Adviser, Protus Prime managing director Paul Toussaint said the fund offers “the perfect investment” for SMSFs as it is a fixed term of seven years.
“That doesn’t create any liquidity issues for SMSF investors and provides them with a return which is significantly stronger than cash, with only a marginal increase in risk,” he said.
Mr Toussaint teamed up with Prime Financial Group – a listed wealth manager with $1 billion funds under management – to offer Prime’s clients direct property investment opportunities, he said.
“We targeted this particular fund because we believe industrial real estate has got a fairly conservative risk profile relative to the other sectors.
“It has been performing strongly and we believe the fundamentals are sound.”
Founded by former ING Industrial Fund boss Mr Toussaint and Prime Financial Group, Protus Prime Industrial Fund is looking to raise a minimum $15 million as part of a total equity raise of $70 million, according to the fund’s March 5 product disclosure statement (PDS).
The PDS states that the $70 million will be used to acquire a $100 million diversified portfolio of investment grade industrial properties.
Mr Toussaint said the fund is a relatively low risk investment.
“We have launched an industrial property fund which is targeted at clients who are looking for a property exposure with a strong risk-adjusted return,” Mr Toussaint said.
“This is a relatively low-risk property investment where we will be investing in established industrial locations in the eastern seaboard states and targeting markets that have excellent access to infrastructure, particularly roads and ports,” he said.
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