Mortgage loans offering secure income streams for Alceon investors

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Regular income streams can be hard for investors to access given record low interest rates and earnings uncertainty due to the COVID pandemic. So where do they turn for income stability. Omar Khan, Alceon Group Director and Head of Wholesale Capital tells ausbiz that it can be found in secured private debt. However so far access to it has been limited for wealth advisory groups. It’s this gap Alceon wants to fill with its new Debt Income Fund. It’s a retail fund that aims to deliver regular monthly income from a diversified and conservative portfolio of debt secured by real estate. The Fund invests in loans issued by mid-market real estate owners and developers to finance real estate assets in Australia and some limited exposure to New Zealand. Omar tells ausbiz that the aim is a annual return of between 5-7% annual with its portfolio of underlying loans, primarily made up of first ranking mortgages. The company has secured these in Australian property situated on the east coast of the country. The loans finance a mix of real estate development, construction and ownership.