Banner Wholesale Real Estate Credit Fund
Earn attractive rates of return from direct investments in specific mortgages over Australian real estate (for wholesale investors only).
The Banner Wholesale Real Estate Credit Fund offers wholesale investors access to fixed income yields through specific Australian real estate mortgages. It operates as an unregistered managed investment scheme, providing discrete investment opportunities via loan units tied to individual properties. Investors initially subscribe for cash units, then allocate capital to specific loan opportunities as they arise.
Each loan class is segregated, ensuring performance is independent. The Fund focuses on secured loans, primarily through registered mortgages, with detailed due diligence and risk management.
Returns vary based on factors like loan term and security property. Investors receive detailed loan memorandums outlining each opportunity. The Fund aims to capitalise on debt inefficiencies in the commercial mortgage market, offering structured, secured investments.
The Banner Wholesale Real Estate Credit Fund is a managed investment scheme designed to provide wholesale investors with fixed income yields from specific mortgages over real estate in Australia. The Fund comprises Cash Units and multiple classes of loan units which relate to specific properties. The investor’s return is fixed for each investment and each class of units is segregated from other investments of the Fund. Performance of one class is unaffected by the performance of another class.
The Banner Wholesale Real Estate Credit Fund is an unregistered managed investment scheme formed by the Constitution. The Fund is designed to provide wholesale investors with an opportunity to invest in a managed investment scheme and receive fixed income yields from specific registered mortgages over real estate in Australia. The Fund is not pooled across Classes within the Fund.
The Fund aims to provide Investors with the ability to select discrete investment opportunities from a selection of discrete real estate finance investments through a professionally managed structure, governed by strict lending policies and backed by sound underlying securities.
The Fund comprises Classes of Units including Cash Units and multiple Classes of Loan Units.
Investors will initially subscribe for Cash Units and will have the ability to refer their capital to specific Loan opportunities as they are offered by the Fund from time to time, by exchanging their Cash Units for the relevant Class of Loan Units.
The Loan Units will comprise a series of separate and distinct Classes of Units where each Class is referable only to the investment described in the Loan Memorandum for that Loan Class.
There is no pooling of assets between different Classes of Units and each Class of Loan Units and each Investor’s risk (and return) is dependent upon the terms and performance of the Loan Class in which the Unitholder is invested.
Investment selection is driven by the Investor.
The Fund seeks to enhance Investor returns by leveraging debt inefficiencies within the Australian commercial mortgage market, whilst maintaining active risk management protocols.
Detailed due diligence is undertaken to identify property assets within the Australian property sector which can be expected to provide higher than average fixed income yields over the short to medium term. This analysis includes both a macro approach to assessing the market, and an individual asset focused selection process, employing stress testing across a range of interest rate scenarios.
The Fund, through each Class of Loan Units, provides secured Loans to Borrowers who offer acceptable property as security.
Loans are primarily secured by registered mortgages, and may also be supported by additional security, such as personal and corporate guarantees. The underlying real estate assets may be commercial, retail, industrial or residential in nature. Interest payments by Borrowers create fixed income yields for Unitholders in each Loan Class.
This Loan to Value Ratio, and its basis for calculation for a specific investment, will be disclosed in the Loan Memorandum provided to the Investor prior to an investment being made in a Loan Class.
The income yield paid to an Investor may vary to reflect the risk of the investment.
This risk may be determined by the investment term, the location and nature of the Security Property, the possibility of early repayment and the background of the Borrower.
Should a Borrower default in repayment of a Loan, the Manager can undertake enforcement action including selling the underlying property security and use the proceeds of sale to repay the investment, including interest income and other costs.
If the sale proceeds are inadequate to cover the Loan repayment, and where there is a guarantee, the Manager will cause a demand to be issued on the guarantors which may result in further recovery of the Loan to repay any outstanding amounts owed to the Investor.
The Manager does not provide finance to parties related to the Manager, its associated entities or its directors, unless disclosed to the Investor in the Loan Memorandum. Typically, Loans will represent less than 80% of the value of the security.
Underlying Security
The Unitholder ’s investment in a Loan Class will be secured by a registered mortgage over real estate granted by the mortgagor to the Fund to secure repayment of the debt.
The underlying security is real property and the mortgage is registered on the title to the Security Property in the name of the Custodian (acting for the Fund). Registration of the mortgage confers priority against other creditors and claimants in relation to the Security Property (with limited exceptions).
No Pooling of Assets
The Fund is not a pooled fund. Other than in respect of the initial investment in Cash Units, the Investor only invests in Loan Units which are referable to specific mortgage securities or managed investment. In holding Loan Units, the Investor has exposure only to the underlying investment referable to the Class (no co-mingling with other investments).
The performance of one Loan Class does not impact the performance of any other Loan Class of the Fund.
This Information Memorandum is the first part of a two-part disclosure and investment application process and investment process.
Once the Application Form (in the form accompanied with this Information Memorandum) is completed and accepted by the Manager, the Unitholder will be entitled to invest in Cash Units.
Unitholders will then be provided with a Loan Memorandum which will detail the particulars of the specific Loan Class on offer, including:
- the Security Property;
- the Borrower;
- the Valuation;
- the fixed yield;
- the exit strategy;
- the investment term; and
- other features and commentary on the Loan.
After acceptance of their investment by the Manager, Investors make their investment in the Loan Class via the Election Form to move funds from the Cash Units account held by the Custodian to the Loan Units.
After the investment is made, Investors will receive a declaration, setting out the terms of their investment and their interest in the mortgage.
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Banner Asset Management Pty Ltd acts as the Manager for the Fund and, with the Trustee, is a member of the Banner Group.
The Banner Group offers investments to both institutional and public wholesale investors, mortgage fund management and mortgage origination and servicing.
As a value-orientated manager, the Manager analyses each investment on its individual merits so as to minimise downside risk and protect invested capital whilst generating appropriate risk adjusted returns. A culture based around risk management, integrity and transparency aims to deliver best in class risk adjusted returns while minimising risk in various investment climates. The Manager’s senior personnel have over 50 years cumulative experience in the commercial mortgage and fixed income sectors.
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.
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.
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.
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.
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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 asset-specific Australian unregistered wholesale managed investment scheme, comprising a number of separate and distinct classes referable to an asset.
The Fund originates and invests in commercial mortgage loans over property. The terms of each investment are offered to an investor through an investment-specific loan memorandum, which details the commercial terms of the investment.
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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