SYDNEY: Assetora Limited (ASX:AOH) announced the launch of the Australian Homeowner Equity Fund, a new investment vehicle aimed at helping Australians enter the property market while offering wholesale investors access to a diversified residential property portfolio.
The fund, which follows a successful two-year pilot with AMP Bank, allows investors to contribute up to 20% of a property’s purchase price in exchange for a co-ownership stake. Homeowners cover the remaining 80% through traditional mortgages, often secured with partners like AMP Bank, and pay the fund an occupancy fee. This structure generates stable income for investors, with additional potential for capital growth.
Assetora CEO Darren Younger said the fund aligns with the company’s goals of innovation and social impact. “We’ve proven the model, built demand and structured a fund that delivers returns while helping Australians buy homes,” Younger said.
The fund has an initial size of $100 million and targets a 12% annual internal rate of return. It includes risk-management measures such as geographic diversification and strict credit assessments. A waitlist of homeowners is already in place, signaling strong demand.
Assetora also benefits from a 50% revenue share agreement with Bricklet’s deposit funding operations, adding recurring revenue without upfront costs.