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
