An ASX-listed fund manager will take over the management of two funds with about $130 million in US-based assets, under a revenue share agreement with a joint venture partner.
Auctus Investment Group's asset management subsidiary will become the fund manager of two investment trusts that own eight student housing properties in the United States.
The properties are worth $US94.5 million (about $130 million) including about US$36.8 million of equity, Auctus said in company filings this morning.
It is a part of Auctus's joint venture with Student Quarters LLC (SQ) announced in July and Auctus will earn revenue as part of the agreement on the existing portfolio.
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"The performance of both trusts have been strong, generating an average yield of approximately 6% p.a. with growth in net operating income since inception. Importantly, US student housing has performed well in the midst of the COVID-19, with average occupancy remaining high through the first half of 2020," Auctus said.
"Occupancy for the 20/21 academic year is anticipated to be above 90% across the portfolio demonstrating the durability and attractiveness of the sector."
Auctus and Student Quarters are also aiming to raise an initial amount US$50 million to acquire other US housing assets.
Auctus is led by Campbell McComb as its managing director. He has previously worked as Newgate Capital Partners' head of venture capital and a director at Melbourne corporate advisory firm Greenwich Capital Partners.
The addition takes Auctus's total assets under management to $220 million, of which about $150 million is fee-earning.