SMSF Commercial Property Loans

SMSFs can borrow to acquire commercial property under an LRBA, subject to the superannuation rules in the SIS Act. The asset must be a permissible SMSF investment, the fund deed and investment strategy must permit property borrowing, and the loan must be structured through a bare trust. Many specialist SMSF lenders have paused LRBA lending or narrowed their appetite for commercial property, creating gaps that private lenders fill on short-term bridging terms while the fund arranges longer-term LRBA finance.

Who This Is For

• •SMSFs with a corporate trustee purchasing commercial property as business real property for a member to use in their business
• •SMSFs acquiring commercial property as a pure investment under LRBA rules
• •Funds whose existing SMSF lender has paused LRBA applications and need a bridging facility to complete settlement
• •SMSFs that have identified a commercial asset with a short settlement deadline that the fund's preferred lender cannot meet
• •Funds purchasing from a related party where the commercial property qualifies as business real property
• •SMSF trustees who need bridging finance while a longer-term LRBA facility is being arranged with a specialist lender
• •Not available to SMSFs with individual trustees (corporate trustee structure required)
• •Not available for residential property that would breach the in-house asset rules

How We Structure SMSF Commercial Property Loans

We lend to the SMSF trustee company in its capacity as trustee. The loan is structured as an LRBA with the asset held in a bare trust until the loan is repaid, consistent with the superannuation borrowing rules. We work with your SMSF solicitor and adviser to confirm the structure, review the bare trust deed, and confirm the fund deed and investment strategy permit the borrowing before we settle.

The credit assessment focuses on the commercial property as security and the fund's ability to service the loan during the term. Fund members typically provide personal guarantees. For business real property acquisitions, we confirm the property meets the wholly and exclusively in business use requirement. For commercial investment, we confirm the asset is a permissible investment under the SIS Act.

Submit your scenario with the SMSF structure, the property details, the purchase price, and the intended use (business real property or commercial investment). Same-day indicative response. Letter of offer within 24 hours of agreed terms.

Three SMSF Commercial Property Scenarios We Have Recently Helped

An SMSF member's medical practice operated from rooms within a specialist medical building. The fund wanted to purchase the suite as business real property, with the medical company paying rent to the fund. The fund's bank had a moratorium on new SMSF commercial loans during a credit review. We provided a 12-month LRBA bridging facility. The fund arranged a specialist SMSF lender within 6 months. Loan: $920,000.

An SMSF identified a strata industrial unit as a commercial investment. The vendor required settlement in 30 days. The fund's preferred SMSF lender quoted 10 to 12 weeks for LRBA approval. We assessed on the property value, the LVR, and the fund's capacity to service. Bare trust structured by the fund's solicitor. Settlement in 8 business days. Loan: $680,000.

A self-managed super fund with two members wanted to purchase a commercial premises from a related company where one member was a director. The property qualified as business real property under the SIS Act. The fund's existing bank declined to lend on related-party transactions of this type. We confirmed the structure with the fund's SMSF adviser and solicitor and settled the acquisition under the LRBA. Loan: $1.3 million.

Speed and Process Advantage

We hold direct credit authority and our team is experienced with LRBA structures. Bare trust review, property valuation, and underwriting run concurrently. For SMSF funds in time-critical situations where a specialist lender cannot move fast enough, we can provide an indicative position the same day and settle within 24 to 72 hours for clean deals where the structure is already confirmed.

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