Core Property has reviewed the Gemi Fund, an unlisted wholesale unit trust that invests in a portfolio of property-backed loans, secured by first and second ranked mortgages over Australian real estate.
The Manager, Gemi Investments, is part of the Gemi Group, a Sydney based private investment firm that has been facilitating mortgage backed investments for over 20 years. Gemi has invested in excess of $2 billion and has maintained a track record of 100% preservation of capital for investors over this time.
The Fund operates by pooling together investors’ funds, which are used to provide loans to commercial borrowers for short loan periods and thereby achieving higher risk adjusted returns.
- The Manager is targeting distributions of 10.5% p.a. (paid monthly), which the Fund has consistently paid since inception.
- The principals of Gemi have invested $5M of capital in Manager Units, which provide a first loss position on any capital losses as well as support for the target distributions.
- Management of the Fund is undertaken by a team with complementary experience in financial services, property finance and property development.
Core Property has rated the Fund as RECOMMENDED.
The Fund is open to Wholesale and Sophisticated Investors only, with a minimum investment of $25,000.