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29-06-2014, 10:48 PM
Golden ticket visas surge
PUBLISHED: 27 JUN 2014 02:25:01 | UPDATED: 27 JUN 2014 10:03:40
LARRY SCHLESINGER
The equivalent of $405 million of investment applications for visas issued to rich foreigners were approved in April and May.
Eighty-one so-called “golden ticket” visas were issued, the most since the program began in late 2012. Eighty-five per cent were issued to Chinese nationals. In total, the Department of Immigration and Border Protection has issued 255 visas worth $1.28 billion since the program was introduced.
A further 928 visas have been lodged with a combined investment value of $4.6 billion.
The program is open to foreigners who invest a minimum of $5 million in government bonds, Australian proprietary companies or ASIC-regulated managed funds.
The visa allows the recipient and their family to migrate to Australia and apply for permanent residency after four years.
Visa applicants do not need to satisfy standard English language proficiency requirements or age limits required for other migrant visas.
Just under 85 per cent of the visas have been issued to people investing in schemes in NSW and Victoria and a smaller number in Queensland, Western Australia and South Australia.
The NSW government’s Waratah Bond program is among those to have seen an uptick in investment. The program is available to foreigners who obtain NSW government sponsorship.
The minimum investment is $1.5 million in a NSW Waratah fixed rate bond over four years.
Jason Huljich, chief executive of ASX-listed Centuria’s unlisted property funds business, said its property funds are compliant with the visas but “it’s my understanding that there is very little SIV investment coming into unlisted property at all”.
“The vast majority of money is going into bonds. Investors want to put their money into something they believe will 100 per cent preserve their capital base. They don’t care that much about low returns.”
Michael Burstin of Oliver Hume Funds Management, which offers SIV-compliant investments in residential development syndicates, said there had been a “significant increase in interest in the visa program following the cancellation in February of Canada’s immigrant investor” program.
The long-running Canadian scheme closed with a waiting list of 59,000 people, most from China.
“We now have over $30 million committed to our fund and expect a further $20 million once current visa applications are approved later this year,” he said.
He said most SIV funds were investing in government bonds or cash and bond funds.
“Bonds are the easy way out for investors who are either unwilling or unable to identify worthwhile private funds to invest in,” he said.
“It takes a lot of time to develop trust with potential investors – enough to invest in a private company fund.”
PUBLISHED: 27 JUN 2014 02:25:01 | UPDATED: 27 JUN 2014 10:03:40
LARRY SCHLESINGER
The equivalent of $405 million of investment applications for visas issued to rich foreigners were approved in April and May.
Eighty-one so-called “golden ticket” visas were issued, the most since the program began in late 2012. Eighty-five per cent were issued to Chinese nationals. In total, the Department of Immigration and Border Protection has issued 255 visas worth $1.28 billion since the program was introduced.
A further 928 visas have been lodged with a combined investment value of $4.6 billion.
The program is open to foreigners who invest a minimum of $5 million in government bonds, Australian proprietary companies or ASIC-regulated managed funds.
The visa allows the recipient and their family to migrate to Australia and apply for permanent residency after four years.
Visa applicants do not need to satisfy standard English language proficiency requirements or age limits required for other migrant visas.
Just under 85 per cent of the visas have been issued to people investing in schemes in NSW and Victoria and a smaller number in Queensland, Western Australia and South Australia.
The NSW government’s Waratah Bond program is among those to have seen an uptick in investment. The program is available to foreigners who obtain NSW government sponsorship.
The minimum investment is $1.5 million in a NSW Waratah fixed rate bond over four years.
Jason Huljich, chief executive of ASX-listed Centuria’s unlisted property funds business, said its property funds are compliant with the visas but “it’s my understanding that there is very little SIV investment coming into unlisted property at all”.
“The vast majority of money is going into bonds. Investors want to put their money into something they believe will 100 per cent preserve their capital base. They don’t care that much about low returns.”
Michael Burstin of Oliver Hume Funds Management, which offers SIV-compliant investments in residential development syndicates, said there had been a “significant increase in interest in the visa program following the cancellation in February of Canada’s immigrant investor” program.
The long-running Canadian scheme closed with a waiting list of 59,000 people, most from China.
“We now have over $30 million committed to our fund and expect a further $20 million once current visa applications are approved later this year,” he said.
He said most SIV funds were investing in government bonds or cash and bond funds.
“Bonds are the easy way out for investors who are either unwilling or unable to identify worthwhile private funds to invest in,” he said.
“It takes a lot of time to develop trust with potential investors – enough to invest in a private company fund.”