Property & Infrastructure Funds Unlisted Property Trusts 2021

Are there any large managers who do property development funds other than Sentinel? Am keen to try abit of money in taking on development risk for a higher return.

 

Yes I forgot about that one. Thanks!


What about smaller players? Has anyone found a compelling proposition for development funds?


On a side note, the upcoming Aust Unity mortgage sydicates look appealing. Havent been really interested in them before as they were paying 6-7% yields. But some of the upcoming ones are +8%. Anyone putting money? And if so, which one?

 

Not sure where you are seeing upcoming syndicates paying +8%.
7%-8% was the norm not that long ago. New loans are now coming in at 6%-7%. There are a few earlier loans that are still running that have a rate of 8% that you might be able to get into at some point, but nothing open right now that I am aware off.

 

Anyone invested in these kind of Senior Debt facilities.

Peer Estate | Truganina Land Bridging Loan

 

Momentum in Perth is offering equity in resi developments. I have not found a compelling proposition however. When you think about it, developers equity (as opposed to debt) will be closely guarded, if the prospects are good. 1st mortgage / mezzanine / then equity and top up equity opportunity will go to friends and family first.

Reposition / value add a different strategy and you can find equity opportunities for this.

 

Some leads for you (names) to investigate if you like on this link, some smaller operators that may develop/value add ;

Managers | Fractional property investments and commercial property syndicates - Investbit

 

I've come across Core Property that writes some PDF summary reports for unlisted and listed REITs, there's one on the latest Centuria government trust and Fortius Queen Street Trust that I saw mentioned here.
Home Page | Core Property

It seems to be free, so my question is how biased are they and how do they get paid? Adviser commission?
Anyone use their research?

 

The property investment specialists you can trust - Binnari Property these guys looks similar to Momentum...has anyone used them for resi IP?

 

I am familiar with the Core property site and have found it to be a good source of info for unlisted property trusts. When I was on the hunt for new unlisted property trusts, I would use the site for all the specifics of the funds they review. I wouldn't put too much weight on their personal recommendation ratings. I am guessing that the managers are the ones paying the site to review their funds. So I cant imagine they would be too critical since the fund manager is paying their bills.

Use it as a research tool for any funds that they review that might be of interest to you.

 

Thanks, yeah agreed. I find the PDF reports a more enjoyable initial read than the full PDS.
Their recommendations though seem to only have 2 levels - Approved or Recommended. Some of the Approved level funds had low star ratings for individual factors like the Buy-2-Rent fund.

Currently looking at Fortius Queen Street trust, there's still a small amount left.. although the timing is a little bit too early for me.

I might have to wait until late September, and analyse whatever is available at the time. Hopefully valuations will take into account any of the COVID effects by then as well.

 

The Fortius Queen St trust is not a bad option. Decent yield for a prime Brisbane CBD location. I hold 4 different property trusts with Fortius and like them as a manger. Only reason I sat out of the Queen st trust is that I am way heavy in property trusts, especially in the office segment.

 

Minimum investment is 100K for this one.

what sort of office fund will you consider if you are starting out now.

 

If I was starting now? My approach with property trusts has always been about steady reliable income flow while taking on minimal risk.

That’s why charter hall sits at the top of my list. In office right now PFA and DOF would be at the top of my list. Something like this Fortius queen st trust would also be a consideration. Single asset fund does create some additional risk compared to a charter hall type multi asset fund but what you get in return is a slightly higher yield with 7.5% and being a closed fund you don’t have the dilution issue that a open ended fund suffers.
I like centuria as well but their most recent offerings are coming in with yields in the 5s. While yield should not be the only consideration I would need to see some serious growth potential to accept a yield in the 5s. DOF would deliver yield in the 5s at today’s buy in price but I like the assets it holds and believe long term they have strong growth potential.

 

I think @apk also meant under 100k based on his post? and starting out might also mean not qualifying for the sophisticated investor requirement too.

Centuria has some listed funds like COF that can be good depending on the current NTA, I haven't researched them lately.

To be honest though I think Residential is great when starting out, because you can negative gear to higher levels and finance is easier to get. Once your rent gets high enough that Rent + Salary = 250k revenue then you qualify for the sophisticated investor letter from your accountant. I'm sure there are some that find sneaky ways to bypass this but it may invalidate some of your rights.

In any case these are what people normally get into after maxing out residential or other exposure, and tend to be more income focussed than cap gain i.e. converting assets into income.

 

Yes that's right, I like DIF4 being a 20K minimum investment.

I do have IP in geelong region and it is positively geared.

When I bought in geelong it was neutral geared, my thinking was income focused but it had a good capital growth since I bought in 2015. Now with ultra low interest rate and the love for residential investment in VIC, I am not buying resi for some time now.

 

May I ask the reason to inveat in unlisted RE sydicate trusts other than the diversification?

 

Sorry I missed that part. I haven't personally looked at options based on minimum buy in amounts as I qualify as a sophisticated investor and only invest $100k plus in each trust. But yes Fortius does not cater for retail investors. In that case Charter Hall and Centuria would be the only 2 on the list right now. Really with Charter halls offerings in Office and industrial that's probably all you really need. It doesn't get much more stable and reliable than the charter hall funds.

High and fairly stable income paying investment, low volatility, tax advantages via tax deferred distributions all topped off with a little capital growth.

 

Oh yes and this one. I do hold a little COF. Its the only listed Reit that I hold. I would say COF is fairly similar to charter halls PFA but with the added benefit of market liquidity. At current price its trading at close to NTA with a yield of close to 7%. It was trading at a big discount not that long ago and would have been a great buy.

 

Thanks @Big A so if one have $100k or so (not sophisticated investor) then what unlisted project would you rank for long term investmeant where equity pull $$$ interest can be claimed....ongoing