A boutique property investment fund with a core focus
in commercial property and construction lending.
Most banks and other mainstream financial institutions have stringent rules and requirements with regards to loan serviceability, borrower experience, tenancy mix and Loan to Value Ratios (LVR), to name but a few.
The minimum requirements would typically be the borrower’s up-to-date financials, proof that the borrower is a seasoned property owner, a strong WALE, Interest Cover Ratio above 1.5 times and a maximum 65% Loan to Value Ratio.
There are, however, a substantial number of private lenders and mortgage trusts (typically referred to as Non-Banks) that are less stringent. These Non-Banks will not be as stringent on Interest Cover Ratios, might accept a lower WALE and be comfortable with Higher LVRs.
Non-Banks, as a rule, are more property focused, as opposed to banks that are more sponsor focused.
Malcolm Hamilton
Director
Malcolm is a serial entrepreneur and businessman within the retail space. He has over 20 years experience as an active Managing Director and owner of multiple fuel; supermarket; liquor and food retail businesses with a permanent workforce of over 300 employees. He has a strong focus on the banking, accounting and controls side of these businesses.
With property and direct property investments being his hobby and passion for many years, the initial relationship with Bedrock Funding, as a sophisticated investor, was a natural fit. This quickly evolved into identifying more opportunities for like-minded individuals with an appetite for passive, short-term investments backed by quality property at above average returns.
As a proud graduate from the “school of hard knocks” Malcolm believes it puts him in good stead to truly understand the intrinsic value of each hard earned dollar. We give validation to this with our own funds invested alongside investors’ money in each and every opportunity.
If you would like to know more about the current preferred equity and mezzanine finance opportunities available please do not hesitate to get in touch with Malcolm.
Pieter Eksteen
Director
Pieter Eksteen is a result driven Construction and Commercial Property Finance Expert with extensive experience in Property Development, Business and Project Management.
This experience enables Pieter to quickly understand the commercial requirements of new or existing projects and craft the most suitable solutions. He has worked in the industry with hands-on involvement in acquisitions, DA’s and project delivery. He specializes in translating practical information into a format financial institutions are comfortable with and understand.
Pieter worked as a Senior Development Manager for 10 years before he specialized in finance. His experience includes working on the full gamut of real estate development matters, including site acquisitions and disposals, development agreements, sub divisional approvals and planning issues, management and marketing issues, contractual disputes, commercial leasing and licensing issues.
He has cemented long-standing relationships with key people within the major banks and lending institutions, and developed a great network including developers, valuers, development consultants, construction companies, investors, commercial agents and project marketers.
In 2013 Pieter joined Holden CAPITAL as their first Consultant. Over the 4 years working with the team at Holden CAPITAL Pieter saw the business grow from “2 blokes sitting in a room and doing deals” to a team of more than 15 and being recognized as one of the leading Commercial Brokerage firms in Australia.
Formal qualifications include a Bachelor of Engineering, a Master of Business Administration, Cert IV Financial Services and a Full Real Estate License.
Specialties: Real Estate Due Diligence, Land Subdivisions, Townhouse Projects, Apartment Towers, Medical Precincts, Hotels.
Finance Experience: Construction Finance Senior Debt – Bank and Non-Bank; Mezzanine Finance; Stretch Finance; Preferred Equity; and Fund Troughs.
MORTGAGE INVESTMENTS
XTON Wealth’s mortgage investments are powered by BEDROCK Funding. BEDROCK is a renowned construction and commercial property broker. Our deal-flow predominantly comes through the long-standing relationships that the brokerage has with developers and banks alike.
We offer two products to our investors:
a.) 12% return per annum paid out monthly.
b.) 15% return per annum paid out at the end of each transaction.
These investments typically run between 6 – 18 month periods.
They are deal specific – Investor funds are not pooled and shared over many transactions, but dedicated to a specific project all within a syndicated model.
These investments are secured by registered mortgages over the properties concerned. There are also a whole suite of other legal documents and guarantees specific to each of the transactions as additional security.
XTON Wealth is also an investor in each and every opportunity, making us not only the syndicate manager but also a syndicate member with a vested interest.
UNIT TRUST INVESTMENTS
Our Unit Trust investment products are more suited to investors with an appetite for direct property investments. These typically run between 5 – 7 years, with a lower risk profile.
XTON Wealth purchases commercial property in a Unit Trust. Investors have an opportunity to purchase units in this Trust and the property is therefore proportionately owned by the Unit Holders. These units owned are actual assets held by the unit holders (or their preferred company structure) – very similar to company shares.
As these units are actual property assets with values, they are tradable at any stage. Such trades/sale of units do, however, attract associated costs like stamp duties and fees, making it more beneficial to own units for the full period of the investment.
Targeted investor returns are as follows:
- 8% per annum paid out monthly to investors.
- PLUS 4% per annum invested into a sinking fund.
- PLUS Potential capital growth realised at the exit.
All up are returns of between 10 – 13% per annum generally projected.
What is a sinking fund?
The sinking fund serves as a “war chest” for the property; this is to adequately be able to care for the property. Expenses like vacancies, maintenance, upgrades etc. will all be covered by this fund. The sinking fund is audited and surplus funds are proportionately distributed back to unit trust holders periodically.
READY TO INVEST?
XTON Wealth handles everything from deal sourcing, negotiations, acquisitions, structure, finance, property management, Trustee corporate governance and the sale and exit of the Trust.
This is a fantastic way for passive investors to get exposure to quality Australian assets without the high-cost ‘barrier of entry’ normally associated with commercial properties.
XTON Wealth is an un-listed Australian Financial Services Licenced (AFSL) property investment fund. This comes with the comfort associated with such a stringent and extremely well-regulated industry in the Australian market.