News and Announcements

New first mortgage private real estate debt fund launches with up to 8.25% p.a. target interest returns

  • Published October 07, 2022 12:00AM UTC
  • Publisher Wholesale Investor
  • Categories Company Updates

Sydney, Australia. 19 Sep. 2022 — CrowdProperty Australia has launched a new fund for wholesale and institutional investors to invest in private real estate debt with target interest returns of up to 8.25% p.a.* after fees.

The fund invests in property project loans providing Australia’s small-scale residential developers with specialist finance, a sector that builds needed homes in Australia’s cities and towns and is typically underserved by traditional finance.

CrowdProperty Australia CEO David Ingram said the fund was a way for wholesale and institutional investors to diversify and de-risk investments through an established platform.

“Our specialist property team directly originates projects and conducts a rigorous 57-step due diligence process on all loan applications, typically funding only four percent of applications received,” Mr Ingram said.

“As a first mortgage fund, we’re 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’s diversified by project type, loan term, and geographic location.”

CrowdProperty’s Partner Fund offers investors up to an 8.25% p.a. target interest return* paid in quarterly distributions with a minimum six-month investment term. Investments start from $25,000. Investors get a concierge service in on-boarding through a limited power of attorney enabling 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 analysing 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 as our loans run from six to 18 months.”

CrowdProperty launched in Australia in early 2021 and has already reviewed over $360m in project loan applications. Its UK sister company was founded in 2013 and has lent over A$428m (£251m) and funded the construction of 2,670 homes worth over A$1 billion (£590m).

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