The opportunity

An income-producing asset class targeting net returns between 6-8% p.a. Demand remains high for first mortgage loans in the sub-$50m commercial real estate sector but the banks have retreated due to funding constraints. Low supply and strong demand creates a significant opportunity for new sources of loan capital. Balmain Discrete Mortgage Income Trusts give investors the ability to invest in stand-alone first mortgages with the opportunity to invest in an individual loan or build their own portfolio. These commercial, higher yield first mortgage loans are selected and fully funded by Australia’s largest non-bank commercial loan manager.

About the manager

Balmain is the largest non-bank commercial loan servicer in Australia and New Zealand with an over 30 years’ focus solely on the commercial property loan market. Formed in 1979, Balmain has originated over $21 billion in commercial property loans over the last 10 years. Balmain has proven expertise in underwriting and managing large-scale CRE debt programs and has the largest commercial loan recovery capacity in Australasia. It has been engaged as an Asset Manager Special Servicer and/or Trust Manager for over $6 billion dollars in CRE assets for some of the world’s largest banks and financial institutions.

About the strategy

Investors can choose from a wide range of individual commercial loan investments. Each stand-alone investment provides different returns, terms, and risk. With access to detailed loan and credit information, investors decide which investments are right for them. Investors can manage their portfolio anytime, from anywhere with a simple to use Investor Control Console including top-up and redemption of Cash Units, investing in Loan Units and tracking the progress of investments easily and securely.

Back to funds for private investors

1. As of 30 June 2018. Target net returns and Loan Terms on completed Balmain Private Loans. Since inception actual returns have exceeded target returns by 0.2%. Past performance is not a guarantee of future performance. Return to the reference