Jun 13 2018Add to Favorites
With the global interest rate environment at all-time lows and banks paying a meager annual rate on savings, which is typically lower than the inflation rate, investors are having to search for opportunities to make their capital work harder. Balmain Private has created a digital concept where the group originates low Loan to Value (LVR) senior debt for real estate assets, which investors can then participate in via a digital platform. Balmain Discrete Mortgage Income Trusts provide investors the ability to invest alongside or “pari-passu” to Balmain, in individual, first mortgage secure loans.
Managed entirely online, the loans have already been originated, approved and funded by Balmain, are fixed term and get a significant participation from Self Managed Super Funds.
“We have over $200,000,000funds under management currently with about 950 individual investors,” Says Balmain Private head of Distribution, Tom Sherston.
“The minimum investment in any loan is $10,000, with typical terms ranging from a few months to three years, with the average net return so far sitting at 7.86 percent, paid monthly”.
Of the Loans repaid 46 percent have exceeded their Target Rate of Return, while the rest have met theirs.
A residential investment in Brookwater, Queensland, of $5,000,000 over three months, earned a return of 10.34 percent, based on a Target Rate of Return of 7.65 percent. Security on the loan was a first registered mortgage General Security Agreement (GSA), guarantees and indemnities from the director and related entities.
In Wetherill Park, NSW, an investment into a commercial development site met its 10.50 percent Target Rate of Return, following a three-month term. The loan amount was $4,471,000, with an LVR of 62 percent.
A $2,700,000 loan on a commercial/residential investment in the ACT exceeded its 10 percent Target Rate of Return, earning an actual return of 11.25 percent over a four-month term.
In Greenvale, Victoria, a $2,100,000 loan over a five-month term, met its Target Rate of Return of 7.6 percent. The security on that loan was a first registered mortgage, GSA, personal guarantees for the full amount of the loan plus interest.
Sophisticated investors are invited to invest into the Fund, with a minimum investment of $250,000 and forecasting a total return in excess of 12% p.a., including average cash distributions of 5.4% p.a. over the 4-year investment period. Stirling’s Directors will co-invest a minimum $1.0 million into the Fund.
To accommodate yield investors Quintessential Equity is set to launch a commercial property fund, which will shortly raise $150million from investors
Qualitas' first "pure property debt" listed investment trust, the Qualitas Real Estate Income has raised another $35 million in funds to issue more commercial loans.
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