- Auctus Investment Group (AVC) subsidiary, Auctus Asset Management, is about to become the fund manager of two investment trusts
- The two trusts own eight student housing properties in the United States, worth approximately A$128.9 million combined
- Through its joint venture agreement with Student Quarters LLC, Auctus will earn revenue on the existing portfolio
- This development will more than double the company’s assets under management to a total of over A$220 million
- Auctus Investment Group closed 9.76 per cent in the green for 45 cents per share
Auctus Investment Group (AVC) subsidiary, Auctus Asset Management, is about to become the fund manager of two investment trusts.
The two trusts in question own eight student housing properties in the United States. Combined, the properties are worth approximately A$128.9 million, including roughly A$50.2 million of equity.
Both trusts have performed strongly, generating an average yield of approximately six per cent per annum since their inception.
Notably, the US student housing assets have continued to perform well, despite operating in the midst of the COVID-19 pandemic. Average occupancy remained high during 2020’s first half, with occupancy for the 2020/2021 academic year expected to remain above 90 per cent.
Auctus’ appointment to the role of fund manager is part of its joint venture agreement with US-based student housing asset manager, Student Quarters LLC. Under the agreement with SQ, Auctus will earn revenue on the existing portfolio.
By taking on the management of the trusts, Auctus will more than double the company’s assets under management to over A$220 million.
In related news, Auctus recently launched the SQ Property Opportunities Fund. Through the fund, which is currently open to domestic investors, the company hopes to initially raise approximately A$68.2 million.
The proceeds raised through the fund will be used to acquire a diversified portfolio of US student housing assets. Auctus and its joint venture partner, SQ, believe that this current period represents an unprecedented opportunity for the sector which must be capitalised upon.
Auctus Investment Group closed 9.76 per cent in the green for 45 cents per share.