The Barwon Individual Subordinated Debt and Preference Equity Property Funds (the Funds) are a series of individual closed-ended funds for wholesale investors. The Funds earn returns from debt facilities provided to Australian property, typically benefitting from the security of a second ranking mortgage. All investments benefit from a preferential return over ordinary equity.
Each individual Fund is limited to a specific opportunity which may lie within any of a range of sectors and locations across Australia. In addition, the Fund will typically invest within a specific stage of properties lifecycle from early stage site acquisition, through to completed residual stock and bridging facilities for existing commercial properties.
The majority of these investments are subordinated to major Australian banks to which Barwon typically has an existing relationship with. Further, Barwon’s focus on providing these facilities to experienced property owners and developers improves the low-risk profile of the investments.
|Fund Type||Unlisted, unregistered, closed-ended unit trust|
|Inception||Specific to each Fund. Typically monthly|
|Investors||Wholesale clients as defined under Section 761G of the Corporations Act|
|Investments||Subordinated debt and preference equity investments security either a second-ranking registered mortgage but with all benefiting from a preferential return|
|Borrowing||Each Fund has no borrowings|
|Redemptions||Not applicable to each Fund|
|Distributions||Specific to each Fund|
|Fund Opening||Specific to each Fund. If you care to register your interest for investment, please contact us.|
|APIR Code||Specific to each Fund|
Key features of the Individual Funds – Subordinated Debt and Equity
- Australian credit market is undergoing a significant structural change
- Major Australian banks tend to provide significant support to experienced borrowers, albeit with lower funding limits
- This provides a larger market for subordinated investment opportunities
- Each Fund invests in a specific Barwon originated and managed opportunity
- The range and regular frequency of investing in each Fund allows the investor to create their own tailored portfolio of subordinated debt and preference equity investments
- Typically benefiting from second-ranking mortgage security
- Experienced quality sponsors
- Low volatility typically with fully fixed returns
- Low correlation with other property sectors