SMSF lender announces $600m mortgage-backed securitisation
Commercial property loan lender Thinktank has announced the closing of its commercial mortgage-backed securitisation transaction worth $600 million, with SMSF loans accounting for 27 per cent of the loans.
Thinktank, a specialist commercial, residential and SMSF property finance provider, has completed its largest commercial mortgage-backed securitisation transaction of $600 million last week, bringing the total bonds now issued by the non-bank lender to $2 billion.
Thinktank chief executive Jonathan Street said the support demonstrated by existing and new institutional investors from both on and offshore is indicative of the strong, broad-based demand that has continued to develop for alternate asset-backed issuance.
The rated notes were placed across a total of 16 institutional investors, with both onshore and offshore accounts participating.
Real money investors represented 83 per cent of the total amount issued while banks accounted for 17 per cent. The transaction was 1.4x oversubscribed, representing bids in excess of $A850 million.
Thinktank said the pool of 1,035 first mortgage loans with an average size of $580,000 was composed of 27 per cent industrial properties, 16 per cent retail, 9 per cent office, 3 per cent mixed use commercial and 45 per cent residential; 86 per cent of properties were located in metro areas with 14 per cent in non-metro areas.
New South Wales was the most prominent state with 53 per cent, followed by Victoria with 28 per cent and Queensland with 11 per cent.
SMSF borrowers, it said, accounted for 27 per cent of loans while the weighted average loan to valuation ratio (LVR) was 66.5 per cent.
Just under 53 per cent of loans were to investors, with the balance to owner-occupiers. The vast majority of loans were on principal and interest repayment at 66 per cent, with only 34 per cent in an interest-only period. Less than 0.5 of a percentage point of borrowers had any form of adverse borrowing history.
“This transaction has been an excellent result amid challenges in the market and allows Thinktank to continue on its growth path and maintain the orderly supply of credit into the critical SME and self-employed sectors of the economy,” Mr Street said.
Miranda Brownlee
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.
