This article is from the Australian Property Journal archive
HYECORP Property Group is planning to launch a series of new property funds to capitalise distressed sales opportunities.
The newest fund, Hyecorp Property Fund No 7 Pty Ltd will be for the development of two residential towers comprising of 48 apartments in Roseville, on Sydney’s prestigious lower North Shore.
This is a follow up on the Hyecorp inaugural property fund, HPF1, which has made a 49% return to shareholders in March 2008, in the midst of the current global credit crisis.
Group director Michael Abolakian said despite recent equity and financial volatility, he anticipates a positive response from existing and new investors.
“Our shareholders were encouraged by our strong returns, which significantly outperformed equity markets, other real estate securities, direct property investment and development funds,” he added.
Hyecorp will also be launching an Opportunity Fund, which will initially focus solely on domestic properties.
The fund will capitalise on the growing number of distressed sales in residential, commercial and development markets.
“We are beginning to see more and more properties come back onto the market at 25-50% discounts to their purchase prices of 12 months ago.
“We will be starting a fund for sophisticated investors who – on their own – would not otherwise have an opportunity to capitalise on these distressed sites. We anticipate the number of these properties will increase significantly in coming months. However the nature of these transactions often requires immediate action, so we are preparing ourselves to start acting now,” Abolakian said.
Hyecorp will be subscribing to at least 51% of the shares.
Australian Property Journal
