Broker launches SIV fund for Chinese property investors

Ausin Group – which expects to write $500 million in Chinese investor loans this year through its brokerage, Ausin Finance – launched the new fund to capitalise on foreign investment in Australian property and expects to raise $150 million up to 30 June 2015.

The real estate fund expects to hold a portion of investments in fixed income and cash.

Joint ventures will also be formed with reputable residential property developers. Capital raised from the fund will be used to increase the stock of new homes in Australia.

“Ausin’s client base comprises thousands of investors who are predominantly Chinese residents,” said Mark Morcos, director of Ausin Group’s Wealth Management division.

“The company identified clients were looking for an investment solution that would help them meet SIV requirements.

“The real estate fund will facilitate this need,” he said.

Chinese investors view the Australian property market as a safe haven for investing, Mr Morcos added.

Launching the real estate fund was a natural progression for Ausin to capitalise on this opportunity and leverage off the company’s expertise in the property market, he explained.

“We are also helping clients’ access property through another investment vehicle to diversify their property portfolio.”

The federal government recently introduced a new visa class, a Premium Investor Visa (PIV) to help speed up the visa process.

This visa requires $15 million to be invested in a complying investment with no residency requirements and a 12-month holding period for the investment.

Austrade and the Department of Immigration have been handed the responsibility of reassessing the current definition of a complying investment and drawing up a list of complying investments for PIVs and SIVs.

The National Industry Investment and Competitiveness Agenda (NIICA) highlighted their preference to align complying investments with growth sectors including food and agribusiness, mining equipment, technology and services, medical technology and pharmaceuticals, advanced manufacturing, and oil, gas and energy resources.

“Ausin supports the government’s recent visa changes, however believes the complying investment guidelines should remain, but be extended to include growth sectors which were highlighted by the NIICA,” Mr Morcos said.

“The SIV currently includes the property asset class and should continue to do so,” he said.

Ausin is one of Australia’s largest privately owned companies providing property, immigration and financial services advice to both Australian and Asia-Pacific markets.

The company sells properties for Australian Stock Exchange (ASX) listed companies and private property developers in Australia and New Zealand.

It employs over 350 staff across offices in Sydney, Melbourne and 11 Asian cities.