Aura Group Venture Fund backs tech-enabled super fund – Superestate
Aura Group is pleased to announce that the Aura Venture Fund has led a A$2.0m raising in a new tech-enabled superannuation fund that allows members to invest a portion of their super in residential investment properties.
Superestate, which was founded by former investment banker and Olympian Grant Brits, is making residential property investment a reality for all Australians, offering its members the opportunity to invest in a portfolio of residential properties through their superannuation. Members choose an investment option that offers the level of residential property exposure they are comfortable with and the remaining balance is invested in a diversified mix of other investments such as Australian and international shares, global infrastructure, fixed income and cash.
Superestate has experienced rapid growth to date through a diversified and targeted marketing strategy. The platform also allows members to instantly find and transfer all their superannuation accounts in just a few clicks.
“Superestate is a super fund designed specifically to meet the desires of younger Australians,” Mr. Brits said. “We have created the only public-offer super fund with a truly unique approach to investment and marketing. Using the fund’s residential properties, we can create a distinctive market position and drive engagement.”
“There is a real gap in the market to get residential real estate exposure in people’s superfund” Eric Chan, Aura Group co-founder said. “For many Australians, setting up a SMSF to buy property is not a viable option. Investors would need to have enough cash in their SMSF for a deposit and sufficient income to demonstrate serviceability, which is almost impossible for younger Australians or low-income earners.”
Mr. Chan continued, “Grant and his team have achieved exceptional AUM and member growth over a short period of time and we’re excited to work with the team to scale their distribution.”
The business is set to take advantage of significant industry tailwinds with superannuation assets expected to increase at 10.0% p.a. through to 2023-24 to A$4.8Tn.(1) Compounding this growth, the guaranteed employee contribution rate is set to gradually increase from 9.5% to 12.0% from 2020-21 to 2025-26. Superestate’s residential property focus is also expected to benefit from the recent Australian federal election result and APRA’s proposed easing of mortgage serviceability rules. Economists and property brokers said APRA's proposal would likely curb the extensive fall in Sydney and Melbourne property prices and bring about an earlier end to the downturn.(2)
To find out more information on Superestate, please visit their website.
The Aura Venture Capital Fund is closed to new investors and contains Wholesale Investors only.
Please feel free to reach out with any questions.
Aura Group is a global financial services business specializing in wealth management, funds management and corporate advisory, with offices in Sydney, Melbourne, Singapore, Brisbane and Bangkok.
IBISWorld Industry Report K6330 - Superannuation Funds in Australia (Aug’18)
Australian Financial Review - APRA 'game-changer' to boost prices (May’19)
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