Why Thinktank?

Thinktank was founded in 2006 and since its launch has grown to one of Australia’s leading specialist non-bank commercial lenders. Since 2006 Thinktank has funded 1,118 borrowers totalling $1.1 billion in commercial property loans all around Australia. We lend to bank grade quality borrowers and our borrowers turn to us for our exceptional customer service, flexibility and smooth processes.

At Thinktank we pride ourselves on our knowledge of the commercial property market and offering high quality borrowers better access to finance along with a more personal touch than the banks. The executive management of Thinktank possesses deep experience and specialist skills in commercial real estate, market data, analytics, origination, servicing & funding. As such it is no surprise Thinktank has lent $1 billion dollars with losses of just over $1 million dollars since inception, all of which were promptly restored via excess portfolio income.

Our Income & High Yield Trusts offer private, wholesale & sophisticated investors a 12 month fixed income bond whereby the underlying security is the commercial property itself. History has shown that the capital component of holding commercial property has fluctuated over the last decade, while the income component has stayed stable.

 

 

 

So what do these charts actually tell us?

The top chart tells us that as interest rates drop, the capital component of the total return achieved through direct property ownership increases. The inverse happens when interest rates rise, i.e. property values can go down.

So where to for interest rates? Can they go any lower or are they on the rise in the near future? Thinktank believe that interest rates are likely to rise in the medium term.  Therefore it’s the right time in the investment cycle to be the ‘banker’ and not the ‘owner’ of direct property.  You can do this by utilising your capital to invest in Thinktank Bonds, and derive interest returns effectively paid for out of the rental income of the underlying property, rather than owning the property yourself.  This way you are protected if interest rates go up. Additionally, your monthly interest receipts will increase immediately as interest rates rise.

Thinktank’s Loss Reserve

In addition to our conservative approach Thinktank have implemented an additional layer of protection to investors, a Loss Reserve.

Learn more about our Loss Reserve