Pooled mortgage funds: An attractive option for property development and construction finance

At Trilogy, we understand time is of the essence for property developers

In an industry where project delays can result in rising costs and increased risk, flexibility is key. 

With funds readily available from our pooled mortgage fund, we provide a competitive and agile option for property development and construction finance. 

Pooled mortgage funds vs contributory mortgage funds

When it comes to providing finance, contributory mortgage funds raise funds for specific projects on a case-by-case basis, and with some trusts, a drawdown-by-drawdown basis. A contributory fund is typically open until investors have invested enough capital to fund a loan and take mortgage security over a single asset. 

On the other hand, open-ended pooled mortgage fundslike our Trilogy Monthly Income Trustremain open and investments can be made at any time. This means that funds are always available. 

With that considered, upon receiving a loan application, our team is able to turn around an indication of support and proposed terms typically within 48 hourssubject to the completeness of the loan application. 

Having availability of funds also ensures each drawdown is met on time throughout the life of a property development or construction project. 

Tailored project support 

We are passionate about property.

Unlike the big banks, we are less focused on your presales and more interested in your property development experience, reputation and quality of the business and marketing plans, as well as a current target loan-to-valuation ratio (LVR) no greater than 65% of the gross realisable value (GRV). 

We judge each loan application we receive on its individual merits and risks. As a result, our funding packages are adjusted accordingly to suit your project needs. 

Interest is typically capitalised and repayments generally aren’t required to commence until project completionenabling you to free up capital during construction. 

Thanks to our comprehensive network of property professionals, we can also coordinate value-add services such as quantity surveying, project management and real estate agency services, should you require additional project support. 

Pooled Mortgage Funds | Trilogy Funds

Property market positivity and increased property demand 

In February, the Reserve Bank of Australia (RBA) indicated that interest rates will be held at a record-low 0.1% until at least 2024. In light of this, Westpac chief economist Bill Evans has predicted, alongside senior economist Matthew Hassan, a 15% national property price “surge” from now to 2023. 

Our Head of Lending and Property Assets, Clinton Arentz notes

“Many key regional areas are performing the best they have in many years, with strong demand for house and land packages, prestige housing, as well as apartments and townhouses.” 

The booming online shopping space has led to demand for quality industrial assets as well. Despite near-record supply, elevated demand has supported the stability of the rental market, according to JLL, creating an attractive prospect for new industrial projects. 

Can we help you? 

At Trilogy, we specialise in providing loans up to $25 million to the residential, commercial, industrial, and retail property development and construction sectors. 

For over 20 years, we have enabled the successful completion of hundreds of projects along the eastern seaboard of Australia, and we take pride in building long-lasting relationships with our clients. 

The types of project we finance include but are not limited to: 

  • Townhouses 
  • Apartment buildings 
  • Industrial complexes 
  • Prestige homes 
  • Land sub-divisions 
  • Completed stock 
  • Service stations 

For more information on financing your next project with ustalk to a member of our Lending team.

This article has been prepared for prospective borrowers and provides information only about Trilogy’s lending services. Trilogy is not a licensed credit provider and does not make loans regulated by the National Credit Code. The source of Trilogy’s loans may include managed investments schemes registered with ASIC, as well as other private lending arrangements with high net worth investors. If you would like more details on our investment opportunities, please contact us.  

This article is issued by Trilogy Funds Management Limited ACN 080 383 679 AFSL 261425 (Trilogy) as responsible entity for the Trilogy Monthly Income Trust (Trust) ARSN 121 846 722. Application for investment can only be made on the application form accompanying the Product Disclosure Statement (PDS) dated 17 December 2018 for the Trilogy Monthly Income Trust ARSN 121 846 722 available at www.trilogyfunds.com.au. The PDS contains full details of the terms and conditions of investment and should be read in full, particularly the risk section, prior to lodging any application or making a further investment. All investments, including those with Trilogy, involve risk which can lead to loss of part or all of your capital or diminished returns. Trilogy is licensed to provide only general financial product advice about its products and therefore recommends you seek personal advice on the suitability of this investment to your objectives, financial situation and needs from a licensed financial adviser. Investments with Trilogy are not bank deposits and are not government guaranteed. 

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