OpenCorp says its fund helps Australians with moderate incomes become property developers

Melbourne-based property group and fund manager OpenCorp has come up with a financial product which it says offers Australians with moderate incomes the chance to become property developers.

The ‘Open Access Fund’ allows investors to invest in the fund and receive a monthly return at a fixed interest rate. Investors receive priority access to OpenCorp’s property funds as they become available, says a media release.

Clients can invest as little as $10,000 into the fund. From there, as new development funds become available, they can choose to direct any nominated amount into a new project.

The first property fund to become available for Access Fund investors will be OpenCorp’s apartment development in Albion, six km north of the Brisbane CBD.

The project has received planning approval for 154 apartments across six levels and is expected to give a 60 percent return on equity over the 3.5-year life of the project. The end value of the development is an estimated $90 million.

“There is a common perception that property development is just for wealthy people, and once upon a time this was the case,” said Michael Beresford, director of investment services at OpenCorp.

“We are now entering a new era for property development.”

More and more Australians are taking over their own investments, due to the volatility of the stock market since the global financial crisis, according to OpenCorp founding director Matthew Lewison.

“We are seeing more and more people taking over their finances, including setting up self-managed superfunds, and looking for innovative investment options,” Lewison says.

“Australians love property and the performance of investments in this sphere can make property development an attractive option.”

OpenCorp has been using a 'crowdsourcing’ model since 2009. The company has an Australian Financial Services Licence (AFSL # 417371) that has allowed it to create and operate crowdsourced funds for OpenCorp’s development projects.

Its pipeline includes over $500 million in developments, with a focus on the Brisbane and Melbourne markets.

“Investors can be across different markets at the same time and therefore benefit from the ups in each cycle,” said Lewison. 

OpenCorp says it has generated an average return of 20 per cent per annum for its investors over the last six years.

“People who haven’t saved enough money for a deposit for their own property can use this financial product as a stepping stone, or as a long-term investment option,” said Beresford.