Sydney-based real estate group Realty Base Group is planning an "apartment fund" to soak up units which foreign buyers cannot settle, turning them into rental properties for investors.

The fund, which will start at $30 million, will mimic the strategy deployed by US private equity firm Blackstone Group's strategy just after the 2007 sub-prime crisis which saw the group buy up heavily discounted rental apartments for rental.

Chinese-backed Realty Base said it would raise funds from high net-worth Asian families and planned to achieve a minimum 10 per cent annual return for the fund over a three to five-year period.

Block after block of apartments in Melbourne. Graham Denholm

"Based on our big data and modelling of off-the-plan market, we can see the risk of settlement will continue to increase in Melbourne and Brisbane," said Realty Base Group director Ted He, who has been involved with Chinese private equity deals for 20 years.

"We even forecast lots of developers will get financial distress and even go to liquidation. Our buyout fund may be the last chance for them but our fund will only be able to help a small number of them."