Over the last decade Australian banks have been steadily retreating from the real estate lending market. This gap has created an opportunity for private lenders to step in and generate a regular income stream in the form of monthly distributions.
Omar Khan, Portfolio Manager at Freehold Investment Management, says the firm is particularly attracted to the mid-market where typical deal sizes range from $10m - $70m. Khan explains that this segment offers outsized returns without sacrificing the quality that is typically associated with institutional-grade deal quality.
Since inception, the Freehold Debt Income Fund has delivered an 8.63% annual net return with distributions paid monthly. In this Fund in Focus, Khan provides an overview of the opportunity in this asset class, the strategy and a case study that demonstrates how Freehold generates a regular income stream for investors.
Key points covered:
- APRA regulation has resulted in major banks retreating from the real estate lending market
- This has left a funding gap and created an opportunity for non-bank lenders like Freehold Investment Management
- Freehold focuses on the mid-market which is under-serviced by the banks and offers an attractive risk-reward opportunity
- Case Study: An opportunity in North West Sydney
- An overview of performance and returns from the Freehold Debt Income Fund
Focus on capital preservation and regular income
The Freehold Debt Income Fund* aims to deliver regular income from a diversified and conservative portfolio of debt secured by real estate. The fund targets an annualised net return to investors of between 7 - 8% paid monthly. Click the contact button below for more information.
*The Fund is only open to wholesale or sophisticated investors.