The Chiodo Diversified Property Fund (CDPF)(Fund) is an open-ended unlisted property development fund that aims to provide long-term capital growth by investing in a diverse property development portfolio including residential, office, commercial, industrial and hotel/accommodation projects.
Fund Objective and Strategy
The Chiodo Diversified Property Fund aims to provide a return that is reflective of exposure to the Australian residential property development sector, and targets to generate long term return of between 11% to 15% on an after fees basis.
As of March 31 2021, the Fund has 7 development properties within the portfolio including residential and accommodation properties. The developments have staggered timelines, with completion dates ranging between 2021 and 2024. Based on grossed realised value of in construction developments, the current fund loan to value ratio (LVR) as at 31 December 2020 is 42.34% across all development projects.
Term & Liquidity
There is no minimum or maximum term of investment; however the Fund is a long-term strategy with a recommended investment period of 3 to 5 years.
The Fund provides quarterly liquidity, and requires investors to provide a 90 day notice period to CF Capital. The amount of redemptions that may be processed in any single quarter is capped at 20% of total FUM.
CFC is under no obligation to accept withdrawal requests if they may result in adverse consequences to the Fund, or one or more unitholders as a whole.
CF Capital will be entitled to a management fee of 1.10% + GST per annum of the Fund’s AUM. This management fee will accrue monthly.
For each financial year, the Investment Manager will be entitled to collect a performance fee based on the total performance of the Fund. The fee will be equal to 20% of all positive performance of the Fund, subject to an 8% p.a hurdle rate being met.
Any distributions in the form of realised gains will be determined and paid at six monthly intervals. Given the Fund’s focus on development, distributions will be paid following the completion and sale of specific projects within the Fund. Distributions will be automatically reinvested unless otherwise instructed by unitholders at the time of their initial application.
* p.a. return since inception as at January 1st, 2021. Inception date of September 2016.
For more information contact the fund manager.
For more information on unlisted property funds and property syndicates please refer to the following guide.
The information provided above should be seen as factual information and not financial advice. All the information provided is not intended to imply any recommendation or opinion about a financial product.
We recommend seeking advice from professional and qualified financial planners prior to investing in any financial product.
- Category : Development Funds
- Manager : CF Property Capital
- Term : Open-ended
- Yield : n/a
- IRR : 10.20%
- Minimum Investment : 10000