Owenlaw Trust, the responsible entity for Owenlaw First Mortgage Income Fund and Owenlaw Mortgage Trust, has been acquired by Australian Unity Real Estate Investment (AUREI).
The two Owenlaw mortgage funds are worth $60 million and $20 million, respectively.
Australian Unity Real Estate Investment general manager Mark Pratt said the acquisition comes at an “opportune time” to expand and grow its mortgage investment business.
“The future of non-bank lending looks promising with the doors to competition starting to open, presenting opportunities for mortgage funds like these,” Mr Pratt said.
“With interest rates predicted to remain low for some time to come, mortgage funds are very well placed to provide investors, particularly retirees, with solid and stable income returns that are well above the cash rate,” he said.
“The Owenlaw First Mortgage Income Fund and Owenlaw Mortgage Trust are quality mortgage funds which have provided investors with stable and regular income for almost 20 years,” Mr Pratt said.
AUREI head of mortgages Roy Prasad said Owenlaw has a strong record for providing development finance for small and medium-sized commercial and residential developers.
“These businesses often find it difficult to source funding from the major institutions for a variety of reasons and we look forward to continuing to service this important part of the market,” Mr Prasad said.
Following the acquisition, the two Owenlaw funds will be renamed as the Australian Unity Pooled Mortgage Fund.