The joint venture company was formed as part of Prime’s expanding integrated wealth management advisory service and allows clients additional diversification and asset exposure through commercial property investment.
Speaking to InvestorDaily, Prime Financial chief executive Simon Madder indicated the time elapsed since the global financial crisis (GFC) was a big factor behind the decision to roll out the new fund.
“The main dynamic behind moving into commercial property is that our clients really have not had much property exposure since the GFC,” he said.
Protus Prime will focus on the creation and management of property investments across various Australian commercial real estate sectors. It will initially target the industrial property space.
The decision comes just months after the June quarter ANZ Research Property Industry Confidence Survey, which shows confidence has rebounded across the commercial property market.
ANZ’s report highlighted that industrial is still a sweet spot at the moment, Mr Madder said.
The investments will be available in a concentrated fund of three to six underlying industrial properties, all along the eastern seaboard, he said.
“The typical asset that we will be targeting to purchase will be anywhere between $10 million to $20 million," said Mr Madder.
"We will have a conservative level of gearing within the vehicle and are taking what I would call a sector specific approach; it won’t be a diversified fund in terms of having retail or office in it,” he said.
Protus Prime will be managed by former ING Industrial Fund chief Paul Toussaint.
