US Masters Residential Fund joins S&P All Ordinaries

The US Masters Residential Property Fund, which invests directly in residential property in New Jersey and New York, has joined the S&P/ASX All Ordinaries Index.

The index comprises the 500 largest companies listed on the Australian Stock Exchange.

Since December, the fund's share price has risen strongly from around $1.60 in December to currently trade close to $1.90.

It has a market value in excess of $315 million, placing it comfortably in the top 500.

The fund, which is managed by Dixon Advisory, has gone distinctly upmarket in recent months, paying US$3 million for a historic four-storey apartment building in trendy Hell’s Kitchen in the heart of Manhattan and spending US$1.8 million on a “limestone mansion” in Harlem.

It has to date raised US$264 million from Australian investors and purchased 463 freestanding homes and apartment blocks in New Jersey, Manhattan and Brooklyn (some of which are pictured below).

Fund managing director Alan Dixon said strong growth and investor support had helped put the fund among the 500 largest companies listed on Australian Stock Exchange. 

“Two years ago, when we launched the US Masters Residential Property Fund, we saw an historic opportunity to acquire high quality US residential property at attractive valuations using the strong Australian dollar,” Dixon said.

Since then, the Fund has secured over 400 freestanding houses and 15 apartment blocks for a total acquisition cost of approximately US$200 million across our target market, the New York metropolitan area.

“Calendar 2012 was a year of many achievements for the Fund, including successfully raising US$165 million, expanding our purchasing activity into Manhattan and Brooklyn, New York, and recording a maiden upward revaluation on our existing investment portfolio of US$5.7 million. 

“It is particularly pleasing to be able to begin 2013 with another significant milestone, as a member of the All Ordinaries Index," says Dixon.