This article is from the Australian Property Journal archive
AURORA Funds Management has raised $47.5 million via an IPO for Australia's first listed property buy-write income trust.
The Aurora Property Buy-Write Income Trust will list on the Australian Stock Exchange on July 26.
The trust aims to generate high semi-annual income distributions by selling call options over a portfolio of 10 property securities listed on the ASX.
Barclays Capital, which advises on more than $US1 billion of funds in buy-write strategies globally, has been appointed to advise Aurora Funds on the Trust’s investment strategy.
Aurora Funds’ director Hugh Latimer said the expected property distribution income yields from the underlying property securities in the trust coupled with the option premium income received by writing call options over these securities has attracted retail investors looking for a high yielding income security from an asset class that has traditionally been less volatile in share price movements than the broader equity market.
Approximately 45% of the subscriptions came from New Zealand investors.
“This was an attractive retail investment offer for NZ. The offer clearly appealed to NZ investors seeking to generate high income returns from an instantaneous blue chip portfolio of Australian property securities.
“It gave many NZ investors a ready made entry point to the Australian property securities market” Latimer said.
Australian Property Journal
