What is a Wholesale Investor?
Wholesale Investors are wholesale clients as defined in the Corporations Act. To qualify as a Wholesale Investor you must either:
- Invest $500,000 or more, or
- Provide a qualified accountant’s certificate (that is not more than 2 years old) confirming you either:
- have net assets of at least $2,500,000, or
- have gross income of at least $250,000 for each of the last two (2) financial years.
What is the Denarau Direct Mortgage Fund?
The Denarau Direct Mortgage Fund provides first mortgage loans secured real property in Australia under credit policy guidelines.
| Investment decisions | Investors choose which mortgages to invest in. |
|---|---|
| Capital and income risk | Investor’s risks are only in the mortgages they are invested in. Investors rely on individual borrowers for income and repayment of capital. |
| Income return | Income commences on the commencement date of the mortgage investment. Each mortgage investment may generate different income returns. Income return is usually higher as the risk is concentrated to only the mortgages invested in. |
| Withdrawals | Investors can only withdraw when the loan is repaid. |
| Security | Security is registered in the name of the Investor. |
| Investment management | Denarau administers and manages each investment and each mortgage across both funds with the same level of management expertise and professionalism. |
How do I receive mortgage investment opportunities from the Denarau Direct Mortgage Fund?
To receive mortgage investment opportunities, Investors first need to join the Denarau Direct Mortgage Fund by registering to become a member.
Once registered as a member of the Denarau Direct Mortgage Fund, Investors are presented with mortgage investment opportunities as they become available.
Mortgage investment opportunities are detailed in separate Syndicate Information Memorandums issued to the registered members.
Members will receive Syndicate Information Memorandums for specific Sub-Schemes and can then apply to invest in specific mortgage investments of their choice.
What is a Sub-Scheme?
Each mortgage investment in the Denarau Direct Mortgage Fund is offered through a separate managed investment scheme known as a Sub-Scheme. Each Sub-Scheme is a loan to a borrower and has its own Investors and holds separate and distinct assets and security from each other Sub-Scheme.
Mortgage investments contained in the Sub-Schemes are only made available to Wholesale Investors.
Investors have rights to receive income or capital distributions in relation to the mortgage investment in the Sub-Scheme selected and in which they are an Investor. Income and capital distributions are proportionate to their share of the total amount contributed to the mortgage investment in the Sub-Scheme selected.
What is an Information Memorandum?
An Information Memorandum is a document used to offer Wholesale Investors a range of financial products such as managed funds.
The Information Memorandum for the Denarau Direct Mortgage Fund provides information for Wholesale Investors to decide if they wish to register to acquire a membership interest in the Denarau Direct Mortgage Fund and should be read in its entirety. It details the features, benefits, risks and general information about the Denarau Direct Mortgage Fund.
Information relating to specific mortgage investment opportunities are detailed in the relevant Syndicate Information Memorandums made available to members of the Denarau Direct Mortgage Fund.
What is a Syndicate Information Memorandum?
A Syndicate Information Memorandum is a document that supplements the Information Memorandum and relates to specific mortgage investments offered to the members of the Denarau Direct Mortgage Fund. It contains credit and loan information, a copy of the valuation report and any information relating to the mortgage investment as Denarau determines appropriate.
To apply to invest in the specific mortgage investment, Investors complete and sign the application form contained within the Syndicate Information Memorandum.
How do I register to become a Member of the Denarau Direct Mortgage Fund?
To receive mortgage investment opportunities, Investors first need to join the Denarau Direct Mortgage Fund by registering to become a member. To do this, Investors need to:
- Read and consider the Information Memorandum for the Denarau Direct Mortgage Fund.
- Complete and sign the registration form within the Information Memorandum.
- Provide confirmation that they qualify as a Wholesale Investor.
- Provide identification as detailed in the Information Memorandum.
Registration is free and provides no obligation to Invest in any mortgage investment.
Once registered as a member of the Denarau Direct Mortgage Fund, Investors are presented with mortgage investment opportunities as they become available.
What is the alignment of interest between the Investors and Denarau?
Denarau’s alignment of interest is simple. If investors are not getting paid, Denarau is not getting paid. This ensures that only quality transactions that meet Denarau’ stringent credit policy are offered to investors in the Denarau Direct Mortgage Fund.