Out of the ordinary: NSW investment firm launches $9M fund to buy Bundaberg rental village – targeting 12.45% return

Published on

Hamilton Asset Management’s Hamilton Liberty Villas Bundaberg Fund is seeking Australian resident investors with a minimum of $50,000 to invest in the Liberty Villas retirement village in East Bundaberg.

Located 3km from Bundaberg, the village operates under a flexible rental model and has 124 independent living units plus a two-unit guesthouse and community facilities.

The firm is selling 9,060,000 units at $1 per unit and forecasts an initial distribution of 9.02% per annum rising to 10.33% over its five-year term.

“With occupancy levels above 95% following refurbishments in 2014 and 2015, the Property is well placed to benefit from secure tenancies as a result of an ageing population,” its website states.

Will it be a good investment?

Three rental village operators launched around 2000, with mum and dad investors in mind and they all lost their shirts. They were ING Real Estate Community Living, Village Care and Sunny Cove Villages (SCV). Eureka rose out of these ashes soaking up the remains at bargain prices.