Part of the Fund's strategy is to invest in single family home repositioning strategies. 

USR has entered into a Joint Venture Special Purpose Vehicle (SPV) with a subsidiary of HomeStar Family of Companies through the creation of a Special Purpose Vehicle designed to take advantage of single family residential repositioning opportunities.

The SPV will have the direct involvement of the HomeStar Family of Companies, who provide significant experience and industry networks. HomeStar understands the requirements of private and institutional investors having amassed over twelve years’ experience in the housing and construction industries and with a general contractors’ license. HomeStar brings an extensive background in real estate acquisition, building and renovating and environmental hazard remediation. This places the SPV at a competitive advantage when it comes to acquiring, renovating and selling to home owners.

The Fund will contribute two thirds of the equity required by the SPV with the HomeStar subsidiary contributing the other third. The SPV will raise debt in order to supplement the committed equity and enhance returns.

The projects will be managed by the Fund through its established management arrangements and target a return on equity after costs greater than 12% per annum.

The project management team will be specifically incentivised by the Fund to identify and manage the repositioning strategy and process.

The Fund’s project management team has effectively managed the repositioning of many of the Fund’s current assets over the last four years. They have developed systems and processes to efficiently and effectively undertake these transactions from identification of assets through to sale. Part of this process has required the development of strong networks of service providers such as title agents, attorneys, insurers, and realtors.

The Fund through its management arrangements will control all aspects of the financial transaction and project management.

The SPV is currently reviewing a range of possible assets for acquisition and we expect to be in a position to make an announcement about specific assets.