Frequently asked questions

HCP is a funds management group providing sophisticated investors with the returns available for property debt investments. HCP was established in 2017 and has offices in Brisbane, Sydney and Melbourne.

Qualified sophisticated investors can invest with HCP. The Corporations Act dictates who a sophisticated investor is.

There are three tests and investors must pass one of them. The most common test passed by HCP investors is individual wealth test, where their accountant certifies that they either have above $2.5 million in net assets or have a gross income for the last two financial years in excess of $250k per annum.

Gary has worked in the financial services industry for the past 15 years, initially in banking. However, over the last 11 years he has specialised in non-bank lending. Gary's role at HCP is quite broad. He sits on the credit committee and also has daily interactions with investors and borrowers. In terms of the deals themselves, he speaks with a lot of the consultants, ranging from valuers to quantity surveyors. The benefit for HCP investors is that we're a relatively small business. Investors can speak to Gary every day, they're not passed on to a different department as they would be in a larger company.

HCP's opportunities are all standalone loans, which means that we operate as a syndicated mortgage manager rather than a pooled mortgage manager. In effect, this means that investors are only exposed to the deal they are personally chosen and there's no crossover to any other loans.

A mix of business owners, SMSF trustees, property professionals and several family offices invest with HCP.

HCP traditionally works with privately owned, entrepreneurial-style developers. They typically have two to three projects on the go at any one time across their portfolio.

HCP staff regularly invest in transactions under the same rules and regulations as all other investors.

HCP is powered by Holden Capital Advisory, a commercial mortgage brokerage firm. This relationship sets us apart from our competitors. We're not solely reliant on brokers and borrowers submitting loan applications to us directly. The real benefit for HCP investors is that there's a constant flow of quality transactions they can choose from.

Growth for growth's sake is not the goal. Our aim is to provide one to two quality transactions per month to our HCP investors. We also strive to improve the risk profile of our transactions. This is our primary goal.

Each loan undergoes a stringent credit approval process and must be unanimously approved by HCP's credit committee. We've got extensive risk checklists, however, the items that we focus on in particular are sponsor, strength, project viability and most importantly the exit strategy.

Each loan is presented to HCP investors via a dedicated Information Memorandum. The IM contains all the information that an investor requires to make an informed decision regarding whether to participate in the loan or not. When they decide to proceed, they complete the accompanying selection form, transfer funds to our solicitor's trust account and then we keep the investor updated right through the loan, until repayment.

50% to 60% of our opportunities are first mortgages and they can range from, site acquisitions to construction loans, right through to residual stock loans. LVR's range from 40% to 65% and investor returns range from 8% to 10% per annum, depending on the metrics of the particular deal.

Primarily interest is capitalised to the loan facility and paid back with capital to investors at the end. However, we do have some transactions that are either paid monthly or quarterly.

The loan terms depend on the type of transaction it is. For a residual stock loan, it can be from 6 to 12 months. In terms of a construction loan, depending on the complexity of the build, it can be anywhere from 12 to 24 months. On average HCP loans run for between 9 and 12 months.

Our investor portal allows investors to easily track all of their investments with HCP. They can see current loan balances, interest paid to date, as well as accessing key documents like tax statements, transaction statements and of course the regular loan updates that HCP provide to its investors

Once a new opportunity is released on the portal, HCP investors can request an allocation in that particular transaction. HCP operates on a transparent first-come, first-served basis in terms of its allocation process.