Why banks won't fund this
Banks view industrial property lending as a specialist market. Most bank branches don't have underwriters with industrial real estate expertise. They're uncomfortable assessing logistics facilities, manufacturing properties, or specialized warehouse buildings.
Add the SMSF layer, and many banks simply won't engage. They'd rather decline and maintain their portfolio within traditional residential lending—which is what they know best. This creates an opportunity for specialist lenders who understand both industrial real estate and SMSF investing.
How specialist lenders look at this differently
Specialist lenders assess deals using a different framework:
- Industrial property expertise combined with SMSF knowledge. These lenders assess warehouse and logistics properties regularly. They understand lease terms, tenant quality, and industrial market cycles.
- Industrial properties generate strong, predictable income. Long-term corporate leases make industrial loans lower risk, so lenders offer competitive rates and higher LVR.
- Approval is straightforward for quality tenancies. If your SMSF is buying a modern warehouse with a multi-year corporate lease, assessment is quick and approval likely.
Ready to explore your options?
Tell us about your situation and we'll show you what lenders can offer.
Describe Your SituationWhat a typical deal looks like
Illustrative example — not a real caseAn SMSF has accumulated $380K and wants to invest in industrial real estate. A warehouse facility in outer Melbourne is available for $850K—it's modern, 95% leased to a distribution company (10-year lease, $68K annual rent), and well-maintained.
The SMSF trustee's bank considers the application but declines because industrial property assessment isn't in their standard offerings. A specialist SMSF lender reviews the property, the strong lease, and the SMSF's equity. They approve a $520K loan (61% LVR) at 5.15% p.a. for 25 years. The rental income of $5,667 per month comfortably exceeds the loan payment of $2,620. The SMSF trustee invests the remaining $330K of capital and gains a quality industrial asset that will appreciate over time.
What lenders want to see
For this scenario, lenders focus on:
- Industrial property valuation or purchase contract — asset details and purchase price.
- Lease agreement(s) — tenant details, lease term, rental rate, renewal options.
- Tenant financial position — confirmation that the lessee can reliably pay rent.
- SMSF documentation — deed, financial statements, trustee details.
- SMSF's existing assets — understanding the fund's equity and borrowing capacity.
- Evidence that the property complies with super law — confirming it's a genuine investment for the fund.
When this might not work
Specialist lending has limits:
- Property is underleased — if vacancy is high or rents below market, income may not justify the loan.
- Industrial property is in poor condition — lenders want modern, well-maintained facilities.
- Lease is short-term or unstable — lenders prefer long-term corporate tenancies.
- SMSF's total borrowings would exceed limits — if already leveraged, additional industrial loans may be declined.
- Property is specialized (e.g., hazardous materials, outdated facility design) — niche industrial is harder to refinance and therefore riskier to lenders.
Our panel includes specialist lenders who actively fund this scenario.
- $100K–$20M
- From 4.99% p.a. onwards
- Up to 80% for modern industrial
- Warehouses, logistics, manufacturing, distribution
- 1–25 years
- Typically 3+ years
- Corporate/multi-year lease preferred
- 14–21 days
Describe your situation and we'll match you with the best options.
How to get funding — Step by step
The process is straightforward:
- Step 1: Describe your deal. Tell us the property type, location, value, and what you need the funds for.
- Step 2: Get matched. Our AI matches your situation against specialist lenders on our panel.
- Step 3: Move forward. Contact your matched lenders directly. Settlement can happen within days.