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.
Dexus today announced its result for the half year and reaffirmed its guidance for distribution per security growth of circa 5% for FY19. Dexus Chief Executive Officer, Darren Steinberg said: “It has been a productive six-month period where we have added value through enhancing our development pipeline and attracting new investors to our funds management business. This has all been achieved while maintaining low balance sheet gearing. “In our office portfolio we continue to outperform the MSCI office benchmark1 over one, three and five years through driving higher rents and lower incentives, particularly in Sydney which has been reflected in property valuations during the period. “In our funds management business, we now have $15 billion under management with investors and partners that can invest alongside us through the cycle, reinforcing our objective of being the wholesale partner of choice in Australian property.”
CapitaLand Commercial Trust Management Limited, the Manager of CapitaLand Commercial Trust (CCT or Trust), is pleased to report distributable income of S$83.1 million for the quarter ended 31 December 2018 (4Q 2018), an uplift of 10.7% from 4Q 2017. Distribution per unit (DPU) was 2.22 cents, 6.7% higher than the 2.08 cents a year ago. Gross revenue and net property income for the quarter increased by 14.8% and 16.6% year-on-year respectively. The better performance was largely attributed to the contributions from newly acquired Asia Square Tower 2 and Gallileo, which more than offset the loss of income from the divestment of Twenty Anson.
Residential developer Legacy Property is set to commence a syndicated equity raise for its 7th and final stage of Caddens Hill, with minimum investment amounts starting at $250,000, targeting 17.5% investment return over the twelve month construction period. Legacy Property has $3bn of projects completed and in progress consisting of c.3,600 dwellings . 14 projects have been completed with another 7 underway, gross completed project values range from $85m to $248million for each project.
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