Clarence Property announces $50 million mortgage fund

by John Maguire26 Apr 2016
Investment fund manager Clarence Property has announced the launch of a $50 million mortgage fund, offering retail investors access to either a pooled fund of mortgages or an option to invest in a specific mortgage, for properties worth up to $5 million.

It is Ballina-based Clarence Property’s first mortgage fund, while the company also manages $320 million worth of funds through Westlawn Property Trust and a number of other syndicates.

Chief Executive of Clarence Property, Peter Fahey, said the group is seeking to raise an initial $50 million for its LFP (loan for property) Investment Fund, which will provide investment and development loans on properties listed at between $200,000 and $5 million.

Fahey said, “We aren't in any hurry. We are experiencing a high level of demand for loans but we are very picky on what we choose – we are only looking at the best quality.

"Our aim in the current market is to achieve a return of 5 per cent to 6 per cent per annum for investors, with quarterly distributions."

The Westlawn Trust ownes a $200 million portfolio of 16 commercial and retail properties between Port Macquarie and the Gold Coast with the new fund set to be popular in the same region.

Locally based mortgage broker Julian Packshaw told Australian Broker, “It’s indicative of what’s happening in the area, there’s a lot going on and its a good place to invest your money, the Northern Rivers. There’s a lot of development opportunities, residential opportunities and I think [the Clarence Property LFP Investment Fund] will do well.”

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