E-commerce growth driving investment in industrial property
Investors looking for alternative investment opportunities with stable returns should look no further than industrial commercial real estate.
That's the word from Jasper co-founder Mark Campbell, who says building a real estate portfolio through his company's digital platform is a great way for investors to grow and protect their wealth.
The benefits of investing through Jasper's digital platform, he says, is that investors can buy fractional portions of commercial properties and real estate funds online, and receive regular distributions from the investment's income paid directly into their bank account. Investors will then have the ability to sell their shares through Jasper's proposed secondary market, giving improved liquidity to a traditionally illiquid asset class.
Jasper's most recent offer is the Industrial Income Plus Fund, a private commercial real estate fund that invests directly in a portfolio of industrial properties located in high growth areas, with resilient tenants and longer-term leases. The fund is acquiring three initial industrial properties, located in Hobsonville, Papakura, and Mangere. The portfolio of properties is fully occupied, which means investors are forecast to receive cash returns starting at 6 per cent per annum.
Mat Harvie, Jasper's head of investor relations, describes the new fund as a "strong investment proposition for investors looking for a reliable risk-adjusted return."
"Jasper has identified and assembled assets located in key urban locations with strong fundamentals – with deposit rates being extremely low, investors need a reliable alternative to term deposits. Commercial real estate provides regular monthly income, underpinned by a hard estate," says Harvie.
"With multiple buildings, tenants and locations, Jasper's new fund offers investors instant diversification from one simple investment, buoyed by strong market tailwinds. It delivers an attractive risk-adjusted return," says Harvie.
While income uncertainty is a common phenomenon post-Covid-19, certain sub-sectors of the commercial real estate market continue to accelerate.
"Auckland's industrial property market continues to outperform other asset classes," says Campbell.
"The sector is experiencing increasing demand for space due to trends amplified by the Covid pandemic such as e-commerce adoption, supply chain disruption, and increasing infrastructure spend.
"The supply of industrial property to the market remains limited, and vacancy rates across Auckland are at historically low levels. Supply simply isn't meeting demand."
For investors, it means there's no better time to take advantage of opportunities within the commercial real estate sector to build and grow a diversified investment portfolio.
"Commercial real estate is one of the most important asset classes for growing long-term generational wealth, yet most investors lack efficient access," says Campbell.
Jasper, as a company, was founded for that exact reason – to provide access to commercial property investing to more Kiwis through its fully digitised onboarding, accreditation and subscription process.
It's a quick process. Signing up as an investor takes less than two minutes on Jasper, and involves less paperwork than a traditional property fund or syndication.
Investors can build their property portfolio by buying units or shares in a selection of commercial properties and real estate funds, all sourced and managed by an expert investment team led by Mark, who has led commercial real estate funds across Australasia and Europe, and overseen assets worth more than $12 billion NZD, in seven countries.
For more information about the latest Industrial Income Plus Fund offer, visit the Fund information page on the Jasper website.