Elderslie syndicate No 7, launched two weeks ago by the Elderslie Finance Corporation, has secured more than 50 per cent of its targeted $11 million capital raising.
Elderslie Property Limited managing director Luis Garcia said investors were shunning direct property investment and opting for alternative investment opportunities, including fixed-interest products.
“Commercial property has emerged as a preferred sector as investors avoid residential investment,” Mr Garcia said. “Investors are hungry for a stable and sound medium-term investment.
“The syndicate has secured a Property Investment Research (PIR) rating of A+, which is a significant result because the offering now pushes into investment grade territory for many financial planners and brokers.”
Mr Garcia said a cross section of investors had opted to purchase units in Elderslie Property Syndicate No 7, and that 47 per cent of the $6.7 million raised so far came from investors who had not previously invested with Elderslie.
Western Australian investors have contributed more than $1.37 million to the syndicate, which has three properties. One of these is a $4.5 million property that forms part of the Australian Marine Complex in Henderson, while the other two are in the Gold Coast and Port Melbourne.
Clough will develop the site for Elderslie. US defence company Raytheon has pre-committed to a 10-year lease on the property.
Opened in July 2003, the $200 million facility has handled multiple projects from a number of diverse business sectors, including defence, mining, oil and gas, and marine services.
LandCorp CEO Ross Holt said the level of sales inquiries received from existing AMC occupants, property developers and marine-related companies had been significant.