Capitalising on Australia’s “unbating” demand for property, Remara has announced the launch of the Remara Opportunistic Development Fund.
Commenting on the launch, managing partner Andrew McVeigh said that the time is ripe for a dedicated diversified equity property development model.
“Our model enables investors to keep investing in what they know and feel secure with, without the higher risk profile of a highly concentrated investment into a single asset,” McVeigh said.
“The challenges around interest rates, planning delays, immigration, international student caps and cost pressures of development has led to a national housing shortage, creating the perfect timing for capital investment into the sector.”
Adding that the investment vehicle is open to retail and wholesale investors, Remara noted that it will allow family offices, institutions, SMSFs and individuals to mitigate risks associated with capital access, planning decisions, migration and building supply chain costs, challenges that may have previously deterred investors.
“Our fund gives people the security of investing in what they know and want, which is property, without the substantial and concentrated capital costs and the exposure to interest rate uncertainty, planning, and they will likely meet the projected development return of 20 per cent, given the housing shortages across the country,” McVeigh said.
Moreover, Remara’s existing credit platform, which has exposure to real estate loans, provides a network of proven counterparties that will be part of the new fund.
McVeigh explained: “Remara’s credit strategy is built on diversification with a large pool of loans, reducing the reliance on one obligor and turning the outcome into a highly measurable statistical outcome. Our Real Estate strategy mirrors this with smaller projects, less risk per project while maintaining headline project and Fund returns.”
“We have established a network of property developers who are proven with a strong track record of successful projects. Remara partners with them at accretive project entry points, providing them greater access to capital to grow their business and project pipeline.”
He added that the developer partners will focus on residential, commercial, and mixed-use projects, and predicts that the resurgence of international tourism and growth in regional coastal cities will likely lead to increased regional development opportunities.
Remara also underscored its own recent research, which indicated an increased demand from investors for growth investment opportunities that can perform well in markets with higher interest rates.
“We have developed the fund and investment strategy to outperform on a growth basis over a long horizon in a market that is exceptionally well known, but hard to access for investors,” McVeigh noted.
“We are not comparing ourselves to existing funds in the market, because it’s an entirely new model for real estate investing in Australia,” he added.
“Our model is reducing the barriers of entry to invest into property development and re-positioning by allowing investors large or small the opportunity to invest in a diverse pool of assets – if property development is your knowledge base, or you have always geared your assets towards it, but can’t take on the development risk yourself, we can.”
