The new property development fund will be led by property finance specialist James Vance, who recently joined the firm.
Vance was previously Strategic Finance head of Australian property finance. Strategic Finance was a division of Allco HIT.
The fund will be a four-year closed-end fund and targets a pre-tax internal rate of return to investors of 25 per cent a year net of fees. The minimum investment is $100,000 per investor.
"Commentators are predicting that most investment markets will produce flat returns for the foreseeable future, so this is one way to help generate above-market returns in a balanced portfolio," Vance said.
Although development finance over recent years had borne a high level of risk, current market conditions were particularly favourable, allowing for prudent investment structuring and lower risk profiles, he said.
"We will seek to mitigate risk by applying strict investment criteria, including no planning approval risk, fixed price and term building contracts, pre-commitments where appropriate and a clearly defined exit strategy," he said.
