Australia's first securitised residential property product aimed at retail investors has been created by Westpac Funds Management. The company’s residential property trust introduced a $26 million investment vehicle directly targeting self-funded retirees. The trust, Westpac Residential Structured Investments, will give investors exposure to the Australian residential property market via 441 residential properties in six states. Those properties were acquired by Westpac from the Defence Housing Authority in two tranches last year for about $191 million. Westpac Funds Management fund manager Lance Vassarotti said the group had targeted self-funded retiree schemes that were typically unable to benefit from negative gearing. "Residential property investment requires a large outlay and self-managed superannuation funds may not be able to access debt or benefit from negative gearing," Mr Vassarotti said. The trust will mature in seven years and investors will not receive any rental income from the properties in the portfolio. Instead they would be paid 130 per cent of the value of the assets at maturity in 2014. "We expect significant demand for the product as this is the first domestic product of its type and should appeal to investors who acknowledge that property remains a fundamental part of any balanced portfolio," Mr Vassarotti said. He said the group had delayed the product until now to capitalise on those investors with self-managed superannuation who had sold out of residential property before superannuation tax changes in June and were again looking for exposure to the sector.