MFEG Diversified Real Estate Credit Fund
An Innovative Way to Invest in the Lucrative Australian Private Credit Market
The Fund aims to provide Investors with regular monthly income and capital stability through exposure to a diversified portfolio of loans secured by real estate located in Australia and New Zealand. The Fund targets an annualized return of 6-6.5% above the 90 Day Bank Bill Swap Rate (BBSW), paid monthly in arrears, net of fees and expenses.
Access to Diversified Portfolio: Investors gain access to a diversified portfolio of carefully selected risk-adjusted commercial loans.
Reduced Administration: The Fund’s structure offers reduced administration for Investors, who can receive monthly distributions reflecting the return derived from multiple pooled investments.
Enhanced Returns: MFEG Investment leverages relationships with leading investment providers to gain access to off-market opportunities, with origination fees from transactions reallocated into the Fund.
Experienced Credit Team: MFEG Investment’s experienced credit team and investment committee conduct rigorous credit processes based on security, development risk, servicing risk, and saleability.
The Fund invests in direct mortgage investments sourced both directly and through private debt financiers, including MFEG.
The Fund targets geographic diversification, borrower diversification, loan purpose diversification, asset class diversification, and maturity diversification.
Loans introduced by MFEG incur a fee of 0.25% of the total loan amount, which is charged to the borrower and reallocated to the Fund.
The Fund will target an average LVR of 65% for investments and will invest in a mix of senior mortgage and second mortgage debt transactions. For construction loans, the LVR will be calculated on the “as-if complete” value of the project.
For other transactions the LVR will be calculated on an “as-is” value of the Security Property.
Once an Investment Term has expired, Investors will have an opportunity to withdraw from the Fund by giving not less than 6 months’ notice by lodging a Withdrawal Request.
Melbourne Finance & Equity Group structures property secured funding solutions from our network of investors, institutional funders and banks. We are able to arrange funding across the capital stack in the form of First Mortgage Debt, Mezzanine Finance and Preferred Equity.
We have established a strong track record of assisting our clients achieve great results in their developments. Our point of difference is in our responsiveness and committed service levels and our simplified process, which enables us to act quickly and decisively. We specialise in assisting property developers with the following scenarios:
- Land acquisitions and holds
- Construction funding
- Residual stock funding
- Equity release
- Ongoing term debt
Each deal is priced according to the requirements of the borrower and attached risk. We have a simple process for assessing a deal and providing terms.
Each of MFEG Investment and MFEG, is headed by Cameron Perry, who has 19 years of experience as a residential and commercial mortgage broker.
He has achieved multiple awards including MPA Top Commercial Broker and MFAA Broker of the Year. He has been the director of MFEG since 2018 and has been responsible for the placement of over $400 million of debt transactions during this period.
Mark Hardgrave has a corporate advisory and investment management background.
He is Chairman of ASX listed companies Traffic Technologies Limited and Pental Limited. He was co-founder and former Joint Managing Director of M&A Partners.
He was the responsible manager for the AFSL held by M&A Partners. Mr. Hardgrave was also previously Chief Executive Officer of Bennelong Group, which specialises in listed equities, property, and private equity.
Earlier in his career he worked in senior roles in several investment groups including Brencorp Group, Merrill Lynch and Thorney Investment Group.
Mr. Hardgrave holds a Bachelor of Commerce degree from the University of Queensland. He is a chartered accountant and a member of the Australian Institute of Company Directors.
Mark acts as a Non-Executive Director of MFEG Investment and is a member of the Investment Committee.
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MFEG specialises in arranging and facilitating development finance for our clients. Our offering is an advisory based model where will seek and provide the best funding solution to our clients based on their specific needs.
We provide funding for:
- Land acquisition and refinances
- Residential and commercial projects
- Residual stock
- SME Businesses
- First Mortgage
- Second Mortgage
- Preferred Equity
MFEG is a major originator for a number of mortgage funds, second tier banks and investment banks. Our network of capital partners also include a global hedge fund and several institutional funders, family offices and high net worth investors. We tailor funding solutions to the right capital partners to structure the best possible solution for our clients.
MFEG has a direct funding option through a partnership with one of our funding partners and can provide competitive first mortgages on land, construction and residual stock loans through this funding line.
We have direct lending products and also originate for our network of funding partners.
Each transaction is priced on it’s merits based on risk profile. We tailor solutions based on the situation and ensuring all costs are transparent.
MFEG has been built based on providing the best possible solutions to our borrowers and putting the clients interest at the forefront of everything we do. We have a proven track record of delivering quality solutions to our clients. We have a philosophy of continual improvement and look to address all issues.
We can fund projects in any capital city or major regional centre in Australia. In Victoria we can also look at any regional location and have funded transactions all throughout the state.
We have the capacity to arrange funding for transactions from $500k to $200m.
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