Case Studies
Issue No. 32 - December/January
Novel Development
Kinsmen’s aim to meet the needs of investors prompted a move into funds management, a strategy that’s gained favour since the first fund was released in December 2000.
“Since that time we have managed eight ‘closed-end’ funds and currently have four open-ended funds, each with a different risk profile, in order to accommodate a broad range of investors,” says MD, Craig Watson.
“Our strategy is relatively simple at the highest level – that is, to create value by combining a property development business with a view to sourcing investment opportunities for a funds management business.”
Craig says the move to open-ended offering was in response to investor preference.
Kinsmen works chiefly in the $5 million to $50 million national property development and investment market in residential, industrial, retirement and commercial sectors.
“Among the highlights of the year has been our national roll-out of quality developments, in particular along the eastern seaboard and the Northern Territory,” Craig says. “Kinsmen has also topped $40 million in funds under management, which is particularly important given our increasing funds management focus.
“A chief challenge has been obtaining developer approvals on investments while another obstacle to growth is the skills shortage, which is a state-wide phenomenon.”
While most property markets across Australia remain fairly robust, Craig says the Queensland ...
