Mr Mehrtens joined Centric chief executive Mr Kearns at the financial services group last month and is now tasked with taking the new DHA fund to institutional investors. The fund is also available to retail investors at a minimum investment of $10,000.
Centric Wealth’s funds management arm, Centric Capital, is the investment manager of the Centric DHA Residential Property Fund (CDRP), through which Centric clients can access the DHA fund, while DHA is the property care and asset manager, according to an investor communication outlining the fund acquired by InvestorDaily.
The DHA fund aims to provide investors with “a diversified Australian residential property exposure that has the potential to generate growing rental income and capital growth,” according to Centric and DHA.
The DHA fund invests in residential properties, predominantly in capital cities, that the government rents to defence force personnel, via a guaranteed rental agreement.
The fund aims to provide a total return comprised of regular income and capital growth over the medium to longer term, according to the investor communication.
Last week Mr Mehrtens told Sky News his main brief is to take the fund to institutional investors, particularly super funds, but at the moment the fund is already being sold to Centric’s private clients for a minimum investment of 5,000 units.
There are currently 83 properties in the initial fund, which will target returns of 8.25 per cent. The initial institutional offering will start at around $150 million with the capacity to grow, Mr Mehrtens said.
