Zenith rates new Spire Capital property fund

Zenith Research has given Spire Capital's recently-launched Spire USA ROC III fund (ROC III) a "highly recommended" rating.

This is the third of Spire's ROC funds to have achieved the "highly recommended" rating, providing Spire Capital with a perfect record following similar ratings for ROC II (2012) and ROC Seniors (2014).

The ROC (Real Estate Opportunity Capital) fund series provide advisers and investors with the opportunity to invest in US Private Equity Real Estate (PERE) in specific themes such as rental apartments and seniors housing rentals.

This is particularly pertinent, the firm said in a statement, since millennials and baby boomers drive up demand for rental accommodation over ownership.

Investors can access the opportunity directly via a PDS or on selected platforms.

The underlying ROC III portfolio will buy approximately $2.0 to $2.5 billion worth of assets and seeks to deliver investors a net 15 per cent Internal Rate of Return (IRR) per annum, inclusive of a forecast 7-8 per cent annual yield for the term of the fund.

"For Australian advisers and investors seeking alternative sources of return, uncorrelated to the Australian equity market and wanting to invest in 'real assets', the ROC Funds provide a great option to diversify portfolios and achieve high total returns," said Spire Capital director Dale Holmes.

Spire's partnership with US private equity group Bridge Investment Group Partners enables Australians to invest alongside some of the most successful institutional and pension fund investors globally. The Australian Future Fund has invested heavily in the US Multifamily apartment sector since 2013.

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