Mulpha Real Estate
Debt Fund

The Fund is targeting a return of 8-10% per annum (after all fees and expenses but before tax).

The minimum initial investment for a qualifying investor is $100,000.
Please contact a member of our team for the copy of the Information Memorandum and other necessary forms mfm@mulpha.com.au.
Applications should be e-mailed directly to registry@apexgroup.com.

Important Information

This website does not constitute financial advice. It is also not comprehensive as it is intended to be an overview only, providing a summary of points usually of interest to investors. Information on this website including, without limitation, any forward‐looking statements or opinions may be subject to change without notice. To the maximum extent permitted by law, MFM, MIM, their related bodies corporate and other affiliates, and their respective officers, employees, consultants and agents (Mulpha Group) do not warrant the accuracy, completeness, timeliness, fairness or reliability of the information that is made available through this website.

Intending investors must obtain a copy of the Fund’s Information Memorandum (IM) and an investment can only be made by completing the application form included in the IM and submitting the completed application to Apex. Intending investors should seek independent financial advice on whether an investment in the Mulpha Real Estate Debt Fund (Fund) is appropriate for them. Investments in the Fund are subject to investment risk, including possible delays in repayment and loss of income or principal invested. Accordingly, the performance, the repayment of capital or any particular rate of return on your investments are not guaranteed by Mulpha Group. Past performance is not a reliable indicator of future performance.

Risks

The Fund carries particular risks associated with an investment such as:

• Withdrawal Risk – A Unitholder may not withdraw from the Fund and is not entitled to require their Units to be purchased, repurchased, or redeemed, either in whole or part, other than as provided in this Information Memorandum. As such, an investment in the Fund may be illiquid, and Unitholders may not be able to exit the Fund at a time of their choosing.
• Illiquidity of Investments – Real estate, which will underlie the Fund’s financing investments, is illiquid. As such, the ability to realise real estate provided by borrowers as security for loans made by the Fund may be negatively affected by this illiquidity, particularly during unfavourable market conditions.
• Allocation Risk –  The allocations of the Fund’s investments across borrowers, locations, underlying property asset types and investment structures may not prove to be optimal and may negatively affect the Fund’s risk-adjusted returns.
• Asset Risk – The Fund will be making financing investments based on underlying real estate assets, which usually will include the setting of a loan-to-value ratio (‘LVR’) for a security property. During the term of the Fund’s investment, the value of a security property may fall or the costs required to achieve or realise that value may increase so as that the LVR is breached by the borrower. The borrower may be unable to cure such a breach through a partial paydown, a capital injection, or even refinancing of the loan. This may lead to an event of default by the borrower where enforcement actions may be taken over the security property to recover the investment. In the event that the expected sales proceeds give rise to a valuation that is lower than the carrying value of the investment, the investment may be impaired as result, reducing the value of a Unitholder’s investment in the Fund.
• Market Risk – The Fund will be operating in the “non-bank” real estate lenders’ segment of the market. Financing terms that can be achieved from borrowers are sensitive not only to general market conditions, both with respect to the broader economy and the property sector, but also in relation to the financing market, and more specifically, the non-bank real estate lenders’ segment of that market, which has its own characteristics. Negative movements in the broader market can be caused by factors such as financial market volatility, economic cycles, foreign exchange rates, technological changes, changes in taxation and other legislation and administrative and judicial interpretations of such legislation, and political, social and environmental conditions. In the non-bank lenders’ market segment, financing terms (and therefore lenders’ investment returns that can be achieved from borrowers) may fall due to competition among non-bank lenders to secure investment opportunities. Such conditions can have a negative impact on the Fund in relation to both absolute and risk-adjusted returns.
• Fund Risk – These are risks particular to the Fund, including the risk that the Fund could terminate at any time as determined by MFM, and that MFM may be replaced as Trustee and MIM as Manager of the Fund. There is also a risk that investing in the Fund may give different results compared to investing individually because of income or capital gains accrued in the Fund and the potential consequences of investment and withdrawal by other Unitholders.
• Manager Risk – The Fund is actively managed. Investments may perform differently to the way MIM expected, which may result in lower income returns and/or capital losses.
• Gearing (Leverage) Risk – Although gearing will not be a core component of the Trustee’s investment strategy, the Trustee may use borrowings or other forms of leverage to gain or increase investment exposure to particular investments or to manage liquidity or risks. Increases in interest rates in connection with borrowings may affect the availability or cost of borrowings and have an impact on the performance of the Fund. Debt funding also creates refinancing risk. This is the risk that, upon maturity of the debt, the Fund is unable to secure debt from alternative sources or extend the current debt on equal or better terms. If this were to occur, the returns to Unitholders could be adversely impacted. Gearing also carries additional risks because any movement in the value of an underlying investment may result in gains or losses being magnified.