(Pictured: Steve Howell)
HCAP Asset Management is opening its next, and fifth, single asset trust, called the South Brisbane Single Asset Trust, to investors on Wednesday for an offer close data of 11 June 2014.
The trust offers exposure to a residential development project and targets a substantial return of 25 per cent over 18 months, net of fees. The management fee is 2 per cent, and the administration fee is 1.3 per cent, for a minimum investment of $100,000.
The development is near the Brisbane CBD and is for a residential development project, called Fleet Lane, with 66 apartments with car spaces, and access to a 300 square metre roof top terrace.
HCAP’s first three single asset trusts, also within a three kilometre radius of Brisbane CBD, managed to deliver returns of 28 per cent, 25 per cent and 25 per cent, against targets of 20 per cent, within 18 months, on average, from launch of the respective development.
A Lane Cove Single Asset Trust was launched in April and another single asset trust will be launched in November for a residential development project in Pymble in Sydney.
As trusts that provide exposure to a single property development, the fund could be considered a unique mixture of a hedge fund and private equity.
HCAP founder, Steve Howell, has a long history in hedge funds in Australia, and was co-founder of Basis Capital.