Yes, property funds and particularly unlisted property funds may be well suited to SMSF’s as they are in their nature long-term investments. Generally speaking Superannuation Funds do not require the level of liquidity that non-super investments need due to long-term preservation periods involved in superannuation investments. 

Under an unlisted property fund investment, the fund will typically own and lease commercial real estate assets, such as retail shopping centres, office buildings, industrial warehouses, hotels, hospitals, childcare centres etc.

For SMSFs planning for the retirement phase for the member or members, the trustees can invest into unlisted property to provide the key income returns required whilst also complementing the other investments of the SMSF from an overall risk/return perspective. 

Investment into unlisted property can also increase the probability of the more predictable, more consistent income returns required to fund pension payments from the SMSF to the members.

An investment in an unlisted property fund can also serve as part of a diversified SMSF portfolio to maintain exposure to growth assets (property) to protect against the risk of outlasting your money (called “longevity risk”) whilst simultaneously providing a high income return relative to other income asset classes (cash and fixed interest or bonds) and reducing overall portfolio volatility.

Please note that this information is not advice and has been prepared without taking account of your particular goals, financial situation or needs. You should seek independent financial advice about whether an investment is right for you.