US Residential Fund snags first apartment block


US Residential Fund plans to invest in a Hillsborough apartment complex in North Carolina supplied

by Nick Lenaghan

Listed property sector minnow the US Residential Fund has struck an agreement to take a controlling stake in a $US22 million North Carolina property, its first investment in the multi-family asset class.

In a joint venture with a US partner, the Australian fund, led by Andrew Meakin, can finalise the deal once it is able to take over the property's debt.

The Patriot's Pointe apartment complex is set on 10 hectares at Hillsborough in North Carolina. It was built in 2004, and has 240 units that are 95 per cent leased.

"We are delighted to have identified such a quality investment opportunity," Mr Meakin said.

"The appeal of this A-grade property is further enhanced by the long-term funding fixed at 3.25 per cent."

The fund plans to retain an equity stake in the complex along with management rights. It will then offer the property for syndication to high net worth investors through an online platform.

If the acquisition goes ahead as expected it will be in line with the fund's strategy of diversifying its US portfolio into multi-family property.

Historically it has been difficult for Australian high net worth investors to get access to the US multi-family sector, a well-established asset class in that market.

The fund expects to complete due diligence in early May, before finalising the investment and listing the property on its online platform.


Read more: http://www.afr.com/real-estate/us-residential-fund-snags-first-apartment-block-20160419-go9wv1?login_token=0SN8iu53exzDhWBedcdPqY5lpWOeFVDCEDO21sKLosm87eHzHHB9OOCUbWCDsmQX1XhvRQvGyoNBLMQv69XIsQ&expiry=1461679267&single_use_token=mh2c1LYE9pBtao9vIm0KupvZXOH00wawH5r-x50unhw5gDHUu4KBv9a9TWVg9sIN5hQlCW2pL4jeo-Qwr8YmRw#ixzz46wOwSJgW 
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