Banner Diversified Real Estate Credit Fund
Earn up to 11% p.a. through an exposure to Australian first mortgage loans (wholesale investors only)
The Banner Diversified Real Estate Credit Fund offers wholesale investors a pooled investment in Australian property mortgages and related debt. The Fund diversifies risk by investing in a range of mortgages, including those within Banner Sub-Schemes, and through assigned interests from other Banner Funds. Investments are primarily secured by first mortgages, with additional security measures in place.
The Fund aims to enhance returns through strategic investments in property debt, employing professional management and rigorous due diligence. Investors receive semi-annual distributions, with withdrawals possible after a one-year lock-up, subject to liquidity.
The Fund provides a diversified exposure to the Australian property credit market, with oversight from an investment committee and board.
The Banner Diversified Real Estate Credit Fund is a pooled, managed investment scheme for wholesale investors. The Fund invests in mortgages and other forms of property-related debt, including investments in Sub-Schemes. As a pooled fund, the Investor has a diversified and proportional share of the Fund’s assets, but no interest in any single asset. Investors are paid returns calculated across the Fund’s investments.
The Manager seeks to enhance Investor returns by acquiring investment positions in Australian property mortgages. This is achieved through:
- Direct investments in property mortgages;
- Direct investment as an investor in Banner Sub-Schemes;
- Interests in mortgages obtained through the assignment of interests by other Banner Funds.
The Trustee also acts as trustee of the Banner Funds. The Fund may invest in Banner Fund loans, either directly or by assignment, where the underlying loan parameters satisfy the Investment Criteria of this Fund (Banner Fund Investments).
The type of financial instruments in which the Fund may invest include, but are not limited to:
- Loans for the development or acquisition of Australian residential, office, retail, industrial or commercial property secured by registered mortgages;
- Interests in Banner Sub-Scheme mortgage loans where the investment criteria of the Fund is satisfied;
- Assignment of interests from other Banner Funds where the investment criteria of the Fund is satisfied;
- Other liquid securities to meet ongoing cash needs of the Fund.
A maximum of 20% of the Fund can be invested in any single investment (once the Fund has in excess of $100 million under management).
How are investments funded?
The Fund’s investments will be funded from:
- Application monies and reinvested distributions (by Investors who have elected not to receive cash distributions); and
- Reinvestment of principal repayments and interest payments on existing loans.
Primarily, the Fund’s investments will be secured by registered mortgages over Australian property assets, obtained through taking security directly or through Banner Fund loans or Banner Sub-Schemes.
The majority of the Fund’s investments will be interests in mortgages and in the Banner Sub-Schemes which are first mortgage secured with respect to the Fund’s investment.
In all cases, a first mortgage will be the underlying security. To ensure its security position, the Fund may also take supporting securities such as general security agreements, specific security agreements, priority or subordination deeds, company charges, personal and corporate guarantees, and side deed arrangements with builders.
The Fund is a pooled fund. Investors hold Units in the Fund which provide the relevant holder with an undivided beneficial interest in all the assets of the Fund as a whole, but not in respect of any particular asset of the Fund. All risks and returns are a product of the Fund’s investments as a whole.
The Fund is illiquid. However, the Trustee will use its best endeavours to manage the Fund’s investments to meet withdrawal requests. All redemptions are subject to available liquidity at the time of redemption and Redemption Requests may be accepted or rejected, in whole or in part, by the Trustee in its absolute discretion.
Security
The Fund’s investments are secured by mortgages over real property (either directly, through Banner Sub-Schemes or assignment of interests).
Distributable Income
Is reinvested in Units for the Investor or, if elected by an Investor, paid to the Investor’s bank account.
Professional management
The Trustee employs both a macro-economic view and an individual loan-focussed asset selection process, and seeks where possible to take advantage of dislocations within the Australian property credit market. The Manager employs a number of finance professionals, analysts, legal and property experts to actively manage all investments.
Oversight
The Manager’s and the Fund’s compliance with its asset selection criteria, procedures, financial performance and structure are overseen by the Investment Committee and the Board.
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Established in 2010, Banner has consistently delivered superior returns to its investors.
Investments include property specific investments secured by a single asset and a number of pooled funds offering differing risk and return to match investor risk and return appetites. Banner adopts a consistent and rigorous approach to its appraisal of each potential investment, with a detailed due diligence and adoption of risk mitigation measures specific to each transaction.
We focus our investments in the major population centres of Australia’s East Coast, which have greater underlying market depth and liquidity.
Banner also offers experienced wholesale investors with higher yielding investments such as equity participations in development projects. All investments are actively managed by Banner throughout the investment term through to repayment of the investment.
Andrew founded Banner Asset Management in 2010, with a vision to establish a truly independent lender with an original view. With 25 years of experience in Global Financial Markets behind him, Andrew set up one of Australia’s independently owned private investment firms specialising in real estate, with his investor-first approach shaping the ethos of the company to this day. Andrew has extensive banking and financial expertise, with a long track record of working in capital markets. He has worked in London, Tokyo and Australia with leading international financial institutions and has been investing in alternative real estate opportunities since 1998.
Andrew is a voting member of the Banner Investment Committee, a member of the Banner Funding Committee and also an owner of Melbourne United.
Brett has over 30 years of experience in funds management and law, including over 20 years’ as partner in several Melbourne based legal firms and an international consultancy practice. Brett has an extensive track record of representing international and local banks, listed corporates, funds and private financiers. Throughout his career, Brett has specialised in finance and the funds management industry and has owned and operated managed funds. As Group Legal Counsel at Banner, Brett works across legal, business structuring, compliance, lending, investor publications and establishing new funds, in addition to a broad range of roles within operations.
Brett holds a Bachelor of Economics and a Bachelor of Laws. He is a compliance officer, responsible manager and a member of the Banner Investment Committee and a director.
Jeremy has been an active investor in international real estate since 1986. He has 27 years of experience in the international money markets, specialising in managing interest rate options groups. Since 1989, Jeremy has held director and senior management positions in leading brokerage companies in Hong Kong, London and Tokyo. He is currently a principal of Estuary LLP, a fund specialising in Argentine agricultural and construction investment trusts.
Jeremy is a member of the Banner Investment Committee.
Matt has over 25 years experience in the property industry having held senior roles for public companies and consulting to high net worth family offices and landowners, driving strategic town planning initiatives and managing individual development projects and portfolios throughout the project life cycle. He has developed projects in his own right and has worked on, repositioned and delivered a wide variety of assets from industrial, commercial, retail, land subdivision and medium density housing, as well as infill and brownfield sites with complex town planning and remediation matters.
Matt is a voting member of the Banner Investment Committee.
To receive further information in relation to Banner Diversified Real Estate Credit Fund Reports, please click here to get in touch directly with our investor relations team.
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All individuals, Self Managed Super Funds (SMSFs), companies and trusts that meet the criteria of a Wholesale Investor as defined under the Corporations Act 2001 (Cth).
You may be a Wholesale Investor if you meet any of the following criteria;
- You apply to invest more than $500,000 in the Fund;
- You hold net assets worth more than $2.5 million;
- Your gross household annual income is at least $250,000 (this can include income from a business if you’re a business owner); or
- You are a professional investor.
The Fund is an unregistered managed investment scheme structured as an Australian unit trust for Wholesale Investors only. The Fund aims to provide investors with a secure, attractive income return from a spread of investments by a pooled fund.
The Fund will predominantly invest in Banner property related Sub-Schemes, primarily development loans within property sub-sectors, secured by underlying registered first mortgages.
Statutory Statement
This offer of scheme interests is available to wholesale clients only. This product listing was vetted by and approved by the product issuer identified above before publishing. Investment Markets (Aust) Pty Ltd AFSL 527875 (IM) is not the issuer of the product.
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