Launch of a new private real estate first mortgage debt fund with target interest yields of up to 8.25% per annum
SYDNEY–(BUSINESS WIRE)–CrowdProperty Australia has launched a new fund for wholesale and institutional investors to invest in private real estate debt with target interest yields of up to 8.25% per annum* after fees.
The fund invests in housing project loans providing small Australian residential developers with specialist financing, a sector that builds needed homes in Australian cities and is generally underserved by traditional finance.
CrowdProperty Australia CEO David Ingram said the fund was a way for institutional and wholesale investors to diversify and de-risk investments through an established platform.
“Our dedicated real estate team originates projects directly and conducts a rigorous 57-step due diligence process on all loan applications, typically funding only 4% of applications received,” Mr. Ingram said.
“As a first mortgage fund, we are the most senior debt in the projects. Our portfolio includes projects in major East Coast cities and Adelaide and the partner fund is spread across all projects, meaning it is diversified by project type, loan term and geographic location.
CrowdProperty’s partner fund offers investors up to 8.25% target annual interest yield* paid in quarterly distributions with a minimum investment term of six months. Investments start from $25,000. Investors receive concierge service during onboarding through a limited power of attorney allowing the CrowdProperty team to complete the registration process on behalf of investors.
Mr. Ingram said the CrowdProperty Partner Fund was also a way for SMSFs and other investment structures to diversify their portfolio.
“Recent data analyzing SMSF investments showed that 43% of SMSFs are not diversified enough, going against the guidelines set by the ATO in 2020,” he said.
“Investing in the partner fund allows SMSFs to build retirement wealth while maintaining a degree of liquidity, with our loans ranging from six to 18 months.”
CrowdProperty launched in Australia in early 2021 and has already reviewed over $360 million in project loan applications. Its UK sister company was founded in 2013 and has lent more than A$428m (£251m) and financed the construction of 2,670 homes worth over A$1bn (£590m). pounds sterling).
* Target returns, no expected returns. For wholesale investors only. Terms, conditions and risks apply.
About CrowdProperty Australia: CrowdProperty is a leading online lending platform that provides financing to small-scale property developers. We effectively meet the financing needs of real estate professionals building high quality real estate developments, with a source of capital from wholesale and institutional investors. www.crowdproperty.com.au