Warakirri, LongView launch home equity strategy

Warakirri Asset Management and LongView are partnering to bring a new shared equity co-investment fund exclusively to wholesale investors seeking access to Australia's residential property market.

The Home Equity Fund 2 tracks the Cotality National Home Value Index and targets an investment return rate (IRR) of 12% to 16% per annum, net of all fees and costs. It requires a minimum investment of $100,000, with a distribution frequency of every six months.

LongView operates by co-investing with homeowners via HomeFlex, its proprietary investment vehicle, in exchange for the return of original capital atop an agreed share of the home's future capital growth, it said.

The new strategy follows the successful closure of LongView's first home equity fund, raising an oversubscribed $50 million and invested in a portfolio of over 200 properties. The strategy has delivered 14.6% p.a. as at March end since its inception in May 2023.

As a fund manager, Warakirri will provide access to its distribution and marketing capabilities for LongView's second fund.

Commenting, Warakirri managing director Jim McKay said the sector has the potential to provide significant long-term returns.

"We are excited to partner with LongView to bring another quality capability and differentiated investment solution for our clients," McKay said.

"This fund provides our clients access to a unique property investment strategy with a solid track record and long-term growth potential."

LongView chair and co-founder James Hooke explained recent tax reforms do not eliminate opportunities in the domestic housing market.

"Despite the impacts of the latest Federal Budget, the underlying drivers - population growth and well-located land - support continued value appreciation for residential property," Hooke said.

"We believe LongView's approach can provide a great way for investors to access the long-term residential thematic without any of the headaches of traditional investment property ownership, via a professionally managed, diversified investment vehicle."

Established in 2016, LongView currently manages approximately 4000 rental properties and boasts a team of over 100 staff.