It can be difficult to consider the concept of investment volatility in the thick of thriving investment market conditions.
In the coming months, industry analysts predict that dividend payouts to the tune of $65 billion will hit thousands of investor Cash Management Accounts (CMAs) on the back of soaring iron-ore prices, in addition to the $7 billion from the ‘Big Four’ banks and the current cycle of almost zero cash rates.
Many will seek to take a leap of faith and reinvest into resources markets, regardless of historical volatility. However, what if there was a way to ride the mining boom without extended risk?
The Boulder Road Property Trust is a $6 million target capital raise (conservatively geared at 50%) with a minimum investment of $100,000. It is open for subscriptions to Wholesale and Sophisticated investors only.
The site is a 6000sq.m fully leased commercial asset in the heart of the goldfields, Kalgoorlie, which is home to a consistent population of 30,000 people that swells to 40,000 in times of ecomonic growth.
The tenancies within our asset class are high quality national retailers and essential to both locals and the resource sector with a WALE of 8.08 years.
Managing Director of investment fund company M/Group, Mr Lloyd Clark, believes now is the time for astute investors to think strategically to maximise their profits with property assets.
“There is no question that amidst the noise of an exciting investment market, there are solid, high yield investment opportunities in the non-listed investment space that offer both security and good returns, he said.
“The acquisition of the Kalgoorlie commercial property was, in fact, inspired by the heightened mining activity, although it is a very different proposition to other more volatile investment stock.”
The Kalgoorlie property fund targets monthly wholesale investor distributions of 8%, which is 7.5%-8% higher than the current cash rate and well above current equity market yields of between 3%-4%.
“What we know is that dividend payouts held in investors’ CMAs will only earn between 0.0% - 0.5% interest, so there really is no option but to reinvest. However, this can be achieved with a more secure and enduring investment class,” Mr Clark continued.
“Resources need resources, and we believe we have found a great income-producing asset that will give investors the best of both worlds.”
