Wholesale investors only

Where the money is invested

Money invested in the Blossum Wholesale Investment Fund is lent to New Zealand businesses as short-term loans, each secured by a registered first or second mortgage over NZ property. Interest from those loans funds the target return of 8% p.a. (after fees, before tax), paid as monthly income distributions.

Returns are not guaranteed and may vary. This page shows real examples of past lending from the Fund’s loan book.

See the case studiesGet the investor pack
1st + 2nd
Registered mortgages securing every loan
75%
Weighted average LVR cap across the loan book
6-12 months
Typical loan terms
Monthly
Income distributions

From your account to a mortgage-secured loan

The Fund pools investor capital and lends it to New Zealand businesses, secured by registered first and second mortgages over NZ property. There is no share market exposure and no development speculation: the Fund is a lender, and every loan is tied to a specific property on a specific title.

1

You invest in the Fund

Wholesale investors contribute capital to the Blossum Wholesale Investment Fund, a New Zealand PIE fund managed by Blossum Private Wealth Trust Limited.

2

The Fund lends it, secured by property

Capital is lent as short-term loans, typically 6 to 12 months, to commercial and property investors. Every loan is secured by a registered first or second mortgage over NZ property.

3

Interest flows back monthly

Borrowers pay interest into the Fund, and distributions are funded by interest earned across the loan book, not by any single loan. Distributions are paid monthly. Returns are not guaranteed and may vary.

The real loans behind the Fund

Three examples of past lending from the Fund’s loan book, with the details as at the time each loan was written. Past lending examples are illustrative and not an indication of future returns.

First mortgage

Hawke’s Bay: an $825,000 first mortgage

The Fund advanced $825,000 of investor capital on a 12-month term, secured by a registered first mortgage over a Hawke’s Bay property valued at $1.1 million.

  • Loan typeFirst mortgage
  • Amount lent$825,000
  • SecurityNZ property, Hawke’s Bay, valued at $1.1M
  • Term12 months
  • This loan’s LVR75% of the property’s value
What protected the Fund’s position A registered first mortgage over the property. On this loan, Blossum investors ranked ahead of other lenders. The Fund lends on both first and second mortgages, decided deal by deal, and the whole book is managed to a maximum weighted average LVR of 75%.
Second mortgage

Warkworth and Newmarket: $24.1 million of security

Long-standing bank clients required a short-term facility to resolve an IRD obligation and prepare an investment property for sale. Refinancing through their primary lender was not viable.

The Fund wrote a second-mortgage facility with a defined six-month term, secured across two properties: a Warkworth property valued at $8.0 million and a Newmarket commercial property valued at $16.1 million, $24.1 million of security in total.

  • Loan typeSecond-mortgage facility
  • SecurityWarkworth $8.0M + Newmarket commercial $16.1M
  • Combined security value$24.1 million
  • Term6 months, defined term
What protected the Fund’s position Registered mortgages over both properties. The Fund uses second mortgages selectively, where risk is clearly defined and timeframes are tightly controlled, and keeps the portfolio-weighted LVR below 75%. Where the Fund holds a second mortgage, the first mortgagee is repaid before the Fund, so second-ranking loans carry higher risk.

Published in Blossum Investor Insights: read the full case study.

Portfolio snapshot

Where the capital sat across three loans

A snapshot of three loans on the book at one point in time, showing how investor capital spreads across regions, property types and loan sizes rather than sitting behind a single deal.

RegionAmount lentLoan and securityThat loan’s LVR
Auckland$2.8MLoan secured over a $22M commercial property67%
Hawke’s Bay$825KFirst mortgage (the loan detailed above)75%
Otago$173K3-month loan secured over NZ property58%

Swipe the table to see each loan’s LVR

Each figure is that loan’s own loan-to-value ratio at the time. Across the whole loan book, the Fund manages to a maximum weighted average LVR of 75%, which keeps an equity buffer between the value of the security properties and the money lent against them.

How loans are chosen

The case studies above are the output of a credit process, not a pipeline that approves whatever comes in. Loans are assessed deal by deal and structured so the Fund’s security position is clear before any capital moves.

Due diligence on every deal

The Fund lends to New Zealand businesses, commercial and property investors. Each application is assessed on the borrower, the security property and the exit: how the loan will be repaid at the end of its term. Whether the Fund takes a first or second mortgage is decided deal by deal.

LVR discipline across the book

The loan book is managed to a disciplined weighted average loan-to-value position, with a maximum weighted average LVR of 75% across the portfolio. Individual loans sit at their own levels, as the case studies show, and the weighted average discipline is what maintains the equity buffer across the portfolio.

Active monitoring

Loan terms are short, typically 6 to 12 months, so positions are reviewed and repaid frequently rather than left to run. The credit team monitors each loan through its term, with a dedicated Credit Manager overseeing the book. Blossum Private Wealth Trust Limited is the Manager of the Blossum Wholesale Investment Fund.

Go deeper

See the full lending criteria in the investor pack

The Information Memorandum and SIPO set out the Fund’s lending parameters, permitted investments, fees and risks in full. We will email you the pack, and an investment manager can walk you through any of the case studies on this page. No obligation.

This offer is available to wholesale investors only, as defined in clause 3 of Schedule 1 of the Financial Markets Conduct Act 2013. It is not intended for retail investors and nothing on this page is financial advice.

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