One of our corporate members has established relationship with 22 hedge funds and family offices that range from US$300m to US$3bn in size, with three being in excess of US$15bn. Here’s the funding criteria for property transactions:

• 10-11% pa interest for a first mortgage
• 15-18% pa interest for a second mortgage
• Ability to fund investments/assets that are outside or more difficult for the major banks
• All asset classes, including residential, industrial, mixed use, hotels and retail
• $10m minimum lend, no real maximum amount
• 2 year minimum terms up to around 5 years maximum
• Slightly better LVR and LTC ratios than the major banks
• Slightly more relaxed presale cover ratios than the major banks
• To seek developers that they will have further opportunities to recycle funds
• Australia wide but capital city preference

In addition, some of the funders will look at preferential equity or equity deals however the preference is for debt based transactions.On the non-property assets, the minimum investment size would be around $10m.