Investor raising $9m to buy Bundaberg retirement village
A BOUTIQUE investment firm is raising $9 million to buy the Liberty Villas retirement village in East Bundaberg.
Hamilton Asset Management's Hamilton Liberty Villas Bundaberg Fund is open to Australian resident wholesale investors with a minimum investment of $50,000.
Liberty Villas has 124 independent living units, a two-storey guest unit and communal facilities.
CBRE valued the asset at $11.25 million in December 2016.
It noted that Liberty Villas suffered $1.1m damage in the 2013 flood. It has since been fully refurbished.
Kinsmen DPF bought the land at Ovens Street in 2005 as a development project, with construction completed in August 2006.
Liberty Villas uses the "rental retirement” model, aimed at retirees eligible for the Commonwealth Government aged pension as well as rental assistance.
"The property operates on a simple rental model, much like a block of flats,” Hamilton executive chairman Steven Pritchard said.
"Accordingly, no undue stress is placed on the property manager,” Mr Pritchard said.
"Residents are typically quite healthy and independent.
"The property is currently 100 per cent occupied, with a waiting list of potential tenants.”
Hamilton is forecasting an initial distribution of 9.02 per cent rising to 10.33 per cent in year five, which will be paid quarterly.