Property syndicate provider Denison LMWI aims to launch up to three single asset property trusts a year as it capitalises on falling real estate prices.
"There is a window of opportunity here to source these kinds of assets on good yields, and we are able to offer funds that have good value upfront as well as a good running yield," LandMark White Invest (LMWI) funds management executive director Michael Este said.
"That is not going to remain in place for ever."
Denison LMWI is a joint venture between LMWI and the Denison Group and was established mid last year.
It is in the process of raising $14.8 million for its first property trust comprising an office building at 165 Walker Street in North Sydney.
Earlier this month, the trust received a recommended (lower end) rating from Lonsec.
The company aims to establish another trust by the end of this calendar year, Denison LMWI chief executive Matthew Burrows said.
"We've got guys looking for new deals at the moment," he said. "We keep the focus on commercial office buildings in the price range of $15 to $50 million."
The company is looking for property in Sydney, Melbourne and Brisbane.
"We only ever kept the markets that we understand and that we can travel to quickly," Burrows said. "We haven't really been to Adelaide, but we might go there."
Future trusts are likely to be all single asset trusts, Burrows said.
"The joint venture was set up to focus on vanilla, single assets," he said. "We're not looking to be all things for all people, but to be really good at this part of the sector."
