Real Estate investing and the housing shortage

Australia is undergoing a macroeconomic shift which is creating a significant opportunity for real estate investing in light of the attractive fundamentals which underpin the sector.

Media outlets are regularly reporting on the acute housing supply shortage and the persistence of higher rents amidst record low vacancy rates.  Very high levels of overseas migration and the return of international students to Australia is proving to be a double-edged sword, driving growth in an otherwise anemic economic environment on the one hand, but exacerbating the housing shortage on the other hand.  The Australian Bureau of Statistics has warned that Australia could be facing a shortfall of 175,000 homes in the next five years.

How can businesses like Schroders RF contribute positively to this challenge?

We are working together with borrowers who are developers of land subdivisions, medium density townhouses and apartment complexes, to increase the supply of product in priority growth corridors and areas where there is a supply/demand imbalance.  

Schroders RF provides loans to assist in the development of properties, or investment in completed product for on-sale or rent – all with the ultimate goal of addressing the housing supply shortage and housing affordability.

As part of our investment process we thoroughly investigate the viability of projects and the likelihood of market acceptance of the end product.  Is it suitable for the location and target demographic?  Are there sufficient local services and infrastructure to attract people to live in the area?  Are the homes priced sensibly for the offering?  Ultimately we are looking for compelling development opportunities that will meet a structural demand, and supporting competent developers in achieving that outcome.  Then we ensure we are pricing the loan appropriately for the risk being taken.
As an investor in commercial real estate with Schroders RF, you’ll benefit from the knowledge of investment professionals who have years of experience, strong relationships with repeat borrowers and who can accurately assess opportunities.  Our 25-year track record of managing Australian real estate loans through multiple economic cycles is part of the reason why Schroders RF can be a trusted partner supporting you in real estate investing.

Corval Avenue Limited ACN 089 265 270 AFSL 238546 (Corval Avenue) is the responsible entity of the Corval Avenue Select Credit Fund ARSN 090 994 326

This document does not contain and should not be taken as containing any financial product advice or financial product recommendations and has been prepared without considering your objectives, financial situation or needs. Before making any decision relating to a Corval Avenue fund, you should obtain and read a copy of the product disclosure statement and target market determination, or other relevant disclosure document for that fund, and consider the appropriateness of the fund to your objectives, financial situation and needs.

Past performance is not a reliable indicator of future performance.

Corval Avenue does not guarantee the accuracy, reliability, or completeness of the information in this document. To the fullest extent permitted by law, Corval Avenue, its group companies, and their directors, officers, employees, consultants, and agents disclaim all liability for any direct or indirect loss or damage arising from the use of this document. All investments carry risk, and the repayment of capital and performance in any of the funds named in this document are not guaranteed.

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