Investment house Wingate has announced the release of the Wingate Property Senior Debt Fund (WPSD).
The WPSD is an open-ended fund that leverages Wingate’s deep property expertise to deliver risk-mitigated returns secured against a portfolio of senior debt property investments.
“WPSD will invest in senior secured property debt opportunities in Australia, where Wingate Property has a deep understanding of the market and associated risks,” said Mark Harrison, Managing Director of Wingate Property. “We have a track record of almost 20 years’ originating opportunities in this asset class and are well-poised to benefit from the trend of developers and property owners seeking alternative sources of capital to those offered by major banks.”
Since its inception, Wingate Property has participated in more than 280 property transactions, funding projects with an end value of more than $13 billion.
“The opportunity is compelling for risk-aware co-investors as the investments are backed by first-ranking mortgages,” said Steven Hur, Wingate Fund Manager. “Whilst interest rates are expected to rise in the coming year, there are very few current opportunities for those investors seeking yield.”
“The WPSD offers both a security level and a yield which many investors find attractive in this environment.”
The fund will have a target return of 5%-7% p.a., with the current forecast expected to deliver 6.6% p.a. in returns over the coming year. The underlying assets will be in diversified senior property assets with a bias toward residential development, and a target loan-to-value ratio of circa 65%.
The WPSD sits alongside longstanding diversified debt fund, The Wingate Investment Partners Trust (WIP). Having delivered 11.3% p.a. in returns since its inception, The WIP fund has grown to manage well over $1 billion in capital on behalf of its co-investors. For further information about the WPSD, contact fundsmanagement@wingate.com.au