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Commercial Real Estate Debt (CRED) Funds
Centuria has been running a series of property first mortgage funds for our wholesale investor base for a number of years and deepened its commitment to the sector by forming a 50:50 joint venture with pre-eminent property credit manager Bass Capital in 2021 (Centuria Bass Credit).
Centuria Bass have a wealth of history and expertise in providing credit facilities to borrowers which are secured against property, typically with senior ranking (i.e. first mortgage security). These property development projects are across a range of sectors and locations, providing attractive, risk-adjusted returns for investors as they form the basis of our commercial real estate debt (CRED) fund(s).
See below the latest wholesale investment opportunities available including our open-ended product, the Centuria Bass Credit Fund.
Open offers
Centuria Bass Credit Fund - Wholesale Offer
An unlisted, open-ended property debt fund offered exclusively to wholesale investors aiming to deliver attractive investor returns with downside protection. Minimum investment $100,000
Centuria Bass First Mortgage Fund No.7 (CBFM7)
A closed-ended, wholesale debt fund that offers attractive floating rate returns and first ranking security of two completed subdivision sites in Box Hill. Minimum investment $100,000
Street CRED – Video series
Watch the Centuria Bass Credit four-part video series, Street CRED, with Ausbiz host, Andrew Geogheghan, where we pave the way to Commercial Real Estate Debt (CRED) investing for shorter term exposures with the potential for higher risk adjusted returns.
Every effort has been made to ensure that the information provided is accurate (as at August 2022) and is the opinions of Yehuda Gottlieb, Partner at Centuria Bass. Information can change without notice and we do not give any warranty as to the accuracy, reliability or completeness of information within this series. This video series is not an offer for, and should not be taken to constitute, an offer to invest in Centuria Bass investment vehicles (Funds). There are risks in investing, which include the risk that part or all of your investment may be lost.
Commercial real estate debt capital markets
Currently, the unlisted commercial real estate debt fund market is focused on senior loans, as the major banks have tightened their lending criteria. Senior loans are first in line to be repaid at expiry of the loan or where the loan is enforced while mezzanine is the last. Therefore, senior loans are considered less risky and consequently pay a lower return.
From a borrower’s perspective, these types of loans are increasingly prevalent and are often referred to as non-bank lending. Currently in Australia, the big four banks dominate all lending with more than 75% market share1. However, in the US, bank finance accounts for less than 40%2. We could see this trend from non-banking finance lending replicated here in Australia.
1. According to the Australian Government Productivity Commission’s Competition in the Australian Financial System, Productivity Commission Inquiry Report Overview and Recommendations (No. 89, 29 June 2018).
2. According to the US Federal Deposit Insurance Corporation (FDIC) Quarterly – Bank and Nonbank Lending over the past 70 years, Chart 1
How to invest
Want to be among the first to know about our commercial real estate debt investment opportunities? Please note you must qualify as a wholesale investor to invest in one of our commercial real estate debt funds.
Need more information?
If you have any questions about our commercial real estate debt funds, please feel free to contact us.
Level 41, Chifley Tower
2 Chifley Square
Sydney NSW 2000