CrowdProperty Australia launches real estate debt fund
CrowdProperty Australia has launched a new fund which will allow retail and institutional investors to invest in private real estate debt.
Named the Partner Fund, it is targeting annual returns of up to 8.25 per cent, after fees.
The Partner Fund will invest in property projects which will deliver financing to Australia’s small-scale residential developers.
CrowdProperty Australia’s chief executive David Ingram said the fund’s portfolio will be diversified by project type, loan term, and geographic location.
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“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,” 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.”
The minimum investment amount is AUS$25,000 (£14,700), with a minimum six-month investment term. Returns will be paid on a quarterly basis.
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Ingram added that the CrowdProperty Partner Fund can be used as a way for self-managed super funds (SMSFs) to diversify their portfolio.
“Recent data analysing SMSF investments showed that 43 per cent of SMSFs are not diversified enough, going against the guidelines set by the Australian Tax Office 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 last year, and has reviewed more than AUS$360m in project loan applications to date.
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