Product
Residential Land Lease Communities (Affordable Residential and Tourist Accommodation)
Returns
8-12%#, paid quarterly on cash flow, not capital gains
Distributions
Distributions paid to investors quarterly
Bond Proxy
- Low volatility – no mark to market
- Fixed rental income subsidised up to 50% by Commonwealth Rent Assistance
Risks
- Government change in eligibility criteria for Commonwealth Rent Assistance or Age Pension
- Interest rate movement
- House price correction
Funding
- Conservative debt equity ratio (less than 60% LVR)
- Interest rate hedging over investment term
Fund Structure
- Five year closed end fund
- Stapled Structure
Responsible Fiduciary
- Highly skilled and experienced team within asset acquisition across private and public property sectors
- Stakeholdings and Directorships in not for profit sectors