The Problem: Unit holders in unlisted property funds are seeing the value of their frozen investments eroded by excessive interest rate and fee charges on loans with the big banks.

The Australian unlisted property sector is worth $60 billion and has over 240,000 investors a large proportion of whom are retirees. Unsustainable bank lending practices in the sector are transforming up to $550 million* of investors superannuation and savings into bank profits each year. This is the equivalent of more than 30,000 single aged pensions.

Unlisted property funds do not disclose the terms of individual loans entered into by the fund to investors. Investors therefore cannot properly assess the riskiness of their units and how much of their investment is used to pay interest and fees to particular lenders. As a result, lenders remain anonymous and their loan terms remain secret.

The Solution: Banks must take a though-the-cycle view of commercial property loans and support sustainable lending practices which reflect a fair price for risk.

 ASIC must tighten Regulatory Guideline 46 so that unlisted property funds are clearly required to disclose the terms of each individual loan entered into.  

Senate Inquiry: Light of Day recently made a Submission to the Senate Inquiry into Bank Lending to Small Business. To view the full submission click here. To view all submissions to the Inquiry click here.

Unlisted Property Investors Take Action To Protect Investments

The "Light of Day" is an association of retiree investors in the $60 billion unlisted property trust sector. Light of Day has been formed following concerns that investors are having their income, capital and future retirement lifestyle quietly converted to bank profits through undisclosed fee and interest rate gouging.

Do you know what the banks are doing to your investment in unlisted property trusts or syndicates?

To find out the facts about the banks’ cost of funds click here.

To find out more about the results of bank policies click here.

Investors in the unlisted property sector are bank customers, both as unit holders in property funds and syndicates and also in their own right.

Up until now, unitholders have not had a direct contact with banks who have lent money to their funds and syndicates.  Light Of Day believes it is time investors had a direct voice to provide Australian Banks and their Directors with direct feedback on policies and corporate governance.

Tired of having the value of your units in an unlisted property trust or syndicate wasted by interest rate and fee charges?

Take action and protect your investment in the Unlisted Property sector. JOIN now.