Diversified real estate developer and investor, Mulpha Australia has made its decade old Mulpha Real Estate Debt Fund available to wholesale or sophisticated investors via the NetWealth platform.
Operating in Australia for nearly four decades, Mulpha is a major developer, owner and manager of real estate with active asset management and development capabilities. Mulpha has over 115 team members and over 80 real estate and hospitality specialists in Australia with extensive expertise in residential, commercial, retail, hospitality and other alternative real estate asset classes.
Mulpha’s existing Australian assets include iconic Hotel properties such as InterContinental Sydney, InterContinental Sanctuary Cove Resort, and InterContinental Hayman Island. It also boasts an extensive retail portfolio including Capri-Via Roma on the Gold Coast, Norwest Marketown in Sydney and an interest in the Brimbank sub regional shopping centre in Melbourne. The Group also has a pipeline of development projects underway at Norwest Business and Residential Park in Sydney and Sanctuary Cove, an integrated resort on the Gold Coast. Alongside entities controlled by Brookfield Asset Management Inc, Mulpha also has an interest in the Aveo Group, the largest operator and manager of retirement communities across Australia.
The Mulpha Real Estate Debt Fund is a wholesale fund established in 2014 that leverages Mulpha’s deep expertise in the real estate sector by investing in a diversified portfolio of predominantly first mortgage Australian real estate debt investments.
At present the Fund has an average LVR of below 65 per cent and comprises over 90 per cent first mortgage investments*. The Fund has had no capital losses since establishment. The Fund does not invest in Mulpha’s own developments. Mulpha has invested $5 million in the Fund on the same terms and conditions as existing unitholders. The Fund has monthly withdrawal windows* supported by a liquidity facility provided by Mulpha to support with timely withdrawals for Unitholders.
Since inception of unit pricing in 2016 the Fund has returned 8.67 per cent per annum and over the past 12 months has returned 9.63 per cent. The Fund has a current return of 10 per cent per annum*.
Mulpha Australia Chief Executive Officer, Greg Shaw said:
“For almost 40 years Mulpha has been a deep value developer and investor in Australian real estate. We are now pleased to draw on this expertise to enable wholesale investors to invest in a prudently managed real estate debt fund overseen by our specialist team. Critically, the management team has combined credit specialists with real estate specialists to carefully select opportunities with the best risk/return profile. This combination has delivered a ten-year track record of success for Fund investors.
“The Fund is now open to investments from $100,000 from qualifying wholesale investors with an aim to increase the fund size to $250 million.”
Luke Sullivan, Director – Funds Management, Mulpha said: “We continue to see attractive lending opportunities, particularly for land loans, residual stock, land subdivision, and land lease communities.
“We are conservative on new built form construction as higher interest rates and construction costs together with a tight labour market are placing increased pressure on builders.
“However, with building commencements at an 11-year low and strong population growth, the supply shortage has resulted in steady sales rates and some pricing uplift for residential developments we have funded. Affordability issues are also supporting growing demand for land lease communities.
“Operational assets, such as industrial, retail and hospitality where borrowers are looking for more flexible covenants than a traditional bank will provide, are also providing attractive opportunities. Retail assets have had good investor interest, supported by data indicating the trend in online sales growth has somewhat stabilised at present. However, we remain cautious in the office sector.”
The Mulpha Group has been operating in Australia since 1985 and is experienced in direct real estate, private debt and private equity. The Mulpha Real Estate Debt Fund leverages Mulpha’s extensive real estate expertise. The Fund has made cumulative investments worth more than $420 million and providing funding for more than 58 real estate projects.
* All returns are to 30 April 2024 and are pre-tax. Past performance is not a reliable indicator of future returns. The Mulpha Group does not guarantee the Fund’s actual performance. Liquidity is not guaranteed. This media release does not constitute “advice”. Potential investors should consider their own financial circumstances when evaluating a potential investment, and should obtain a copy of, and consider the Fund’s disclosure documents before making any decision to invest.
Related Articles
