The Mandate
What We Do
Short-term lending secured by First Registered Mortgage over Australian real property, originated through specialist lenders who carry part of each loan themselves.
The Lending Mandate
Auremont originates and manages short-term loans secured by First Registered Mortgage over Australian real property. The mandate covers completed commercial property, completed residential property, residual stock, and serviced and englobo land.
Loans are full recourse to the borrower and are supported by personal guarantees from the principals behind the borrowing entity. Security is held through a Single Asset Trust established for each loan, so that the security position for one facility is not commingled with any other.
Origination
The Approved Financier Model
Auremont does not originate directly from the market. Loans reach the programme through a network of Approved Financiers, origination partners with established books in secured property lending, admitted to the programme after assessment by the Manager.
The distinguishing feature is co-investment. An Approved Financier invests its own capital alongside the Fund in each loan it brings and holds at least five per cent of that loan in a first loss position. Where a loan underperforms, the Approved Financier’s capital is exposed before the Fund’s.
That is a structural alignment rather than a stated intention. It applies loan by loan, not at the level of the relationship, so an Approved Financier carries exposure to each specific credit it introduces rather than to the portfolio in aggregate.
Containment
One Trust for Every Loan
Each loan is held in its own Single Asset Trust, with the security for that facility held separately from every other. A problem in one loan is contained within the trust that holds it.
Across the programme that produces diversification by construction rather than by intention, spread over separate trusts and across the asset classes within the Mandate rather than concentrated in one asset or one category.
The Detail
The lending parameters, the policy exclusions, the credit assessment applied to every application, the security taken and how loans are managed to maturity are set out in full at Disclosures. The committees that decide, the parties appointed to the programme and the conflicts framework are at Governance and risk.
Balanced Disclosure
The controls applied to this programme are designed to manage risk. They do not remove it. Loans can default. Property security can realise for less than the amount owing. A written Exit can fail to complete. Enforcement can take longer and cost more than expected, and capital can be lost. Past market conditions are no guide to future conditions.