Aurora Funds Management Limited has completed the capital rising for its new listed Property Buy-Write Income Trust.
Aurora received $47.5 million through an initial public offering (IPO) for the Aurora Property Buy-Write Income Trust.
In what the group believe is an Australian first, the trust offers retail investors the potential to receive a high distribution yield from a buy-write investment strategy over a portfolio of Australia's leading property securities through one listed investment trust structure.
The trust aims to generate high semi-annual income distributions by selling call options over a portfolio of 10 property securities listed on the Australian Securities Exchange (ASX).
The portfolio of 10 listed property securities will be geared within the trust to an average loan-to-value ratio of 50 per cent in order to enhance the distribution returns to investors.
