First mortgage investments generate returns through the provision of first ranking loans to the Australian property development industry. Dorado’s first mortgage loans are designed to help developers settle land, construct new buildings, and complete projects across Australia’s rapidly growing communities. Investments range in size between $2 million and $15 million, focusing on land settlement, construction, or residual stock projects with a short-medium term duration of 6 to 36 months. Investors choose whether to invest in Dorado’s first mortgages via single assets, an open-ended fund, or a combination of both.
Investors can choose to receive new first mortgage investment opportunities as they occur, making the decision to invest in each deal. Single asset investment is suitable for an investor with a higher risk profile who is prepared to lock up funds for between six months and two years, and who prefers hands-on decision making.
For investors with a lower risk profile or shorter investment horizon, investing in a Dorado Fund allows for the instant deployment of capital to a diversified portfolio of several first mortgage assets, with a target return of RBA Cash rate + 5% (currently 9.35%). Each first mortgage investment added to the Fund is carefully assessed by our team of experienced originators, making it suitable for investors who prefer a secure, set-and-forget option. Unlike single asset investments, Dorado First Mortgage Fund is open-ended, allowing for investors to expand and redeem their investments monthly.
Many investors have both long-term and short-term investment goals, and prefer to build portfolios that balance higher risk investments with investments that preserve capital. To this end, Dorado First Mortgage allows for a combination of both fund and single asset investment. This is a highly customisable investment option tailored to each individual’s needs, that has the flexibility to adapt over time.
Dorado was approached to facilitate the acquisition of an industrial land lot totalling 16.2ha in size in Environa, New South Wales. We provided the developer a first mortgage land loan with a term of 12 months and representing a 65% LVR, with a 10.00% p.a. net investor return on capital deployed to the loan.
A Western Australian developer approached Dorado for funding to facilitate the development of a 1.83ha vacant land lot into 34 single residential land lots and a 90-place childcare centre in Canningvale, Western Australia. Dorado provided first mortgage funding with a loan term of 12 months and representing a 60% LVR, with a 9.25% p.a. net investor return on capital deployed to the loan.
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