Assetora Launches $100M Shared Equity Fund Targeting 12% Returns
Assetora Limited has launched the Australian Homeowner Equity Fund, a $100 million initiative offering shared equity investments with a targeted 12% annual return, following a successful pilot with AMP Bank.
- Launch of $100 million Australian Homeowner Equity Fund
- Targets 12% internal rate of return combining income and capital growth
- Supports Bricklet Homeowner Program with shared equity model
- Over 25 transactions completed in two-year pilot with AMP Bank
- Fund aims to expand Assetora’s funds under management and recurring revenues
A New Chapter in Shared Equity Investment
Assetora Limited (ASX:AOH) has officially launched the Australian Homeowner Equity Fund, marking a significant expansion of its property investment offerings. The $100 million fund is designed to provide wholesale investors with access to a diversified portfolio of residential properties through a shared equity model. This approach allows investors to contribute up to 20% of a property's purchase price, while homeowners finance the remaining 80% via traditional mortgages, typically arranged with leading banks such as AMP Bank.
Proven Model with Strong Demand
The fund builds on a successful two-year pilot phase conducted in partnership with AMP Bank, during which more than 25 homeownership transactions were completed. This pilot demonstrated the viability of the shared equity structure and generated a waitlist of homeowners eager to participate, underscoring strong market demand. Homeowners pay an occupancy fee to the fund, providing investors with stable income streams alongside potential capital appreciation.
Strategic Growth and Revenue Expansion
Assetora’s CEO, Darren Younger, highlighted the fund’s dual focus on innovation and social impact, emphasizing its role in helping Australians access the property market while delivering attractive returns. The fund targets a 12% internal rate of return per annum, combining income and capital growth within a risk-managed framework that includes geographic diversification and robust credit assessments.
Beyond expanding funds under management, the Homeowner Fund also enhances recurring revenue through Assetora’s partnership with the Bricklet platform. Under this agreement, Assetora receives a 50% revenue share from Bricklet’s deposit funding operations, creating a scalable and aligned growth model without upfront acquisition costs.
Implications for Investors and the Market
This launch positions Assetora as a key player in the evolving shared equity market in Australia, offering investors a novel way to participate in residential property growth while supporting homeownership. The fund’s structure and proven demand pipeline suggest potential for significant scale, although investors will be watching closely how the fund manages risks related to homeowner defaults and market fluctuations.
As Assetora moves forward, the fund’s performance and expansion will be critical indicators of the company’s ability to balance financial returns with social impact, potentially setting a benchmark for similar investment vehicles in the sector.
Bottom Line?
Assetora’s new fund could reshape property investment, but its success hinges on scaling demand and managing risk.
Questions in the middle?
- How quickly will the fund raise its initial $100 million target?
- What are the long-term default risks associated with the shared equity model?
- How will recurring revenues from the Bricklet platform evolve as the fund scales?
