The Quintet Private Debt Fund I (the Fund) was established to originate, underwrite and execute first mortgage, mezzanine debt and preferred equity investments into real development projects.
The fund manager believes that the current real estate regulatory environment creates a compelling opportunity to capture outsized returns by providing capital secured by second mortgages. Increasing lender scrutiny from APRA, particularly concerning the capital adequacy of Australian major banks and the inflationary nature of the commercial property market, has constrained bank liquidity and traditional loan capital sources, leading to the opportunity for the Fund to generate attractive returns.
Limited competition, increasing developer sophistication, fund diversification, robust fundamentals and risk mitigation are all factors considered in creating this investment prospect. The investment strategy is therefore to target attractive real estate opportunities in capital cities along the eastern seaboard of Australia, with a particular focus on properties located in Sydney. The Fund concentrates on the residential sector including mixed use developments, with a secondary focus on commercial and industrial opportunities where vendors face capital constraints. By offering developers capital that is otherwise not available to them, the investment manager believes the Fund can feasibly achieve above average returns over the 3 year investment term.
The Fund is managed by Quintet Partners Pty Ltd, an independent investment management firm whose principle is Douglas Farrell, and includes a transaction sourcing and management arrangement with Stamford Capital, one of Australia’s leading commercial real estate finance brokers.
One Funds Management Limited is the trustee of the Fund and members of One Investment Group provide registry and administration services to the Fund.
Should you have any queries, please contact us on [email protected] or call us on (02) 8277 0000.