iPartners has launched a new senior secured property investment offering, saying tighter capital conditions are creating new opportunities in Australian property credit.
The launch of iPartners Property Investment Notes (PINotes) follows a period in which iPartners deliberately limited its exposure to property construction lending, believing returns available to lenders did not adequately compensate for risks including rising construction costs, project delays and build quality.
While recent media coverage has highlighted financial distress involving borrowers including Bathla Group, Public Hospitality and JDH, iPartners says it currently has no exposure to these entities.
With capital becoming scarcer across the property sector, iPartners believes the market is now presenting opportunities to achieve more competitive risk-adjusted returns.
The new PINotes provide investors with exposure to a diversified portfolio of Australian property loans held within the iPartners Property Credit Fund (iPCF).
Structured as senior secured A-Notes, PINotes benefit from a 10 percent first-loss buffer, with subordinated capital absorbing the first 10 percent of portfolio losses before senior noteholders are impacted.
The underlying portfolio consists predominantly of first-mortgage Australian property loans and currently has a conservative weighted-average loan-to-value ratio (LVR) of 62 percent.
PINotes offer an interest rate of one-month BBSW plus 4.25 percent per annum, equivalent to a current effective rate of 8.56 percent per annum*, with distributions paid monthly.
The Notes have a two-year term, although iPartners may repay them after the first year. If they are not repaid at that point, the interest rate increases to one-month BBSW plus 4.75 percent per annum for the second year.
Applications opened on 3 September and close on 30 September 2026, with interest commencing on 15 October 2026. Expected maturity is 15 October 2028.
*Current effective rate is subject to movements in one-month BBSW.
