Australian Wholesale Unit Trust
TOTAL TARGET RETURN
9% p.a. (Net of Fees)
Wholesale Investors Only
After 18 Months
Fund Flyer (PDF)
|1 Month||3 Month||6 Month||1 Year||SINCE INCEPTION|
|Net Return (Cumulative)||0.55%||2.06%||0.55%||8.51%||12.36%|
|Net Return (Annualised)||6.65%||8.24%||8.31%||8.51%||8.72%|
|Net Return (Cumulative)||0.59%||2.18%||4.15%||8.36%||11.30%|
|Net Return (Annualised)||7.12%||7.72%||8.29%||8.36%||7.97%|
Exposure by industry
|2||Rail Leasing||$25.0||7.65%||2||Senior Secured|
|3||Equipment Leasing||$9.0||8.00%||1.5||Senior Secured|
|6||Auto Parts||$30.0||9.00%||2||Senior Secured|
AVARI has been active in the private lending space since 2015 and has a track record of not having made a loss on a loan investment. Unlike most private lenders, AVARI are also property equity investors,managing over $1 bilion in assets on behalf of their investors and have completed a number of residential and commercial construction projects, refurbishment, leasing and sales.
AVARI's key strengths:
Access to deals
AVARI's knowledge and experience in lending and in acquiring and managing real estate assets in the Australian market gives them broad access to deals. For example,a lending deal can arise from an initial purchase discussion and vice versa. Given its track record and established relationships in the market, AVARI is an active player and often receives referrals from brokers, bankers and institutional investors.
In-house property team
Unlike most fund managers, AVARI has a full in-house property team which includes architects, analysts, project managers, interior designers and internal sales/leasing. This allows the AVARI team to look at lending deals differently- rather than simply assessing ratios and pre- sales. AVARI looks at the asset from an equity investor's perspective and determines the feasibility and the probability of the borrower achieving a positive outcome. In the event of a loan default, AVARI can easily step in to complete a project rather than trying to sell an asset during the construction or development phase. The team also allows AVARI to look at loan deals through a property investor's lens.
AVARI's property market knowledge allows fast and efficient due diligence. AVARI has a deep understanding of how to acquire and manage asset and complete a development. AVARI's experience in property development allows its team to analyse loan deals to identify potential isues that may arise during development to ensure a positive outcome.
AVARI is not limited by deal sizes. With reliable funding sources from institutional investors, AVARI can originate deals that are usually beyond the investment size offered by a standard private lender.
Flexible approach to deals
AVARI seeks to contribute to the borrower's success by sharing its in-house property expertise, including advice on asset management, development, leasing and sales. This also allows AVARI to access deals which may not be available to a standard private lender.
Alignment of Manager
AVARI and its staff will invest in the Fund in the same class of units as as investors to align interests.
AVARI prides itself on its communication. Investors will be kept up to date regarding loans in the Fund's portfolio on a monthly basis.
The fund is invested in mortgages backed by individual property assets throughout Australia, these assets are subject to general property market risks and may fall in value which could result in loss of capital for loan investments. Investments are subject to minimum 18 month investment period and the Fund’s income and capital are not guaranteed.
Borrowers in the commercial real estate market in Australia are in the business of the development, investment,
acquisition or improvement of real estate. Borrowers pledge security of the real estate to the lender, meaning
in case of default the lender can sell the asset to recoup their loan.
Typical loans include:
Land loan - secured against vacant land which is to be developed. Generally, the land will be zoned for residential or commercial development and the borrower requires capital to settle the land and apply for a development application.
Construction loan - for commercial or residential construction, secured against the land and the future construction. Funds are generally drawn down gradually to meet construction costs.
Commercial loan - for acquisition/refinance of an office or industrial asset.
Residual stock loan - loan secured against completed residential development where apartments or houses remain unsold.loan is generally paid back as remaining stock is sold.
Bridging loan - Short term loan to assist borrower to obtain another finance arrangement or to sell the asset.
Tranches of First Mortgage
AVARI Capital Partners is a value-add real estate investment specialist, managing over $1bn AUM. We have a fully integrated property team including architects, project managers, tenant managers, interior designers and development managers. This allows us to move quickly and capitalise on projects when others can’t. We invest our own capital alongside our clients in every deal. Supported by local advisers, offshore clients, international hedge funds and investment banks.
This document has been prepared by Avari Capital Partners Pty Ltd (ABN 86 626 245 172) [an affiliate of Avari Holdings Pty Ltd (ABN 88 603 200 648, AFSL 472222), formerly known as Acer Capital] for information purposes only. The information is only directed at investors who are wholesale investors or professional investors pursuant to the Corporations Act 2001 (Cth). This is not an offer to sell or a solicitation or an offer to subscribe or purchase or a recommendation of any securities referred to herein and the information has not taken into account any potential investors’ personal objectives, financial situation or needs. Before investing, you should consider your own objectives, financial situation and needs or you should obtain financial, legal and/or taxation advice. The financial forecast and forward-looking statements contained in this document are not guarantees or predictions of future performance and involve known and unknown risks and uncertainties and other factors, many of which are beyond the control of Avari. Avari does not give any assurances that the results, performance or achievements expressed or implied will actually occur.