Sydney
SMSF Commercial Property Loans in Sydney
Sydney has Australia's highest concentration of SMSFs and the country's most active panel of SMSF commercial lenders — including the structures that let you buy your own business premises inside super.
200+ lenders
On panel
25+ years
In commercial finance
ACL 502091
Australian Credit Licence
ABN 91 135 045 340
Registered broker
Sydney is Australia's SMSF capital
Over 200,000 SMSFs are administered out of Greater Sydney — roughly 30% of the national total. The active commercial SMSF lender panel runs deeper in Sydney than any other city, with Macquarie, Liberty, La Trobe, Thinktank, Sucasa, RedZed and a handful of specialists all actively writing new business. This depth produces tighter pricing (currently 7.0–8.25% for prime business real property) and broader policy flexibility than smaller capital city markets.
Business Real Property is the dominant Sydney use case
The single most common Sydney SMSF commercial transaction is a successful business owner buying their own premises through their fund. The structure: SMSF + bare trust acquires the property; operating business pays market rent to the SMSF; SMSF services the loan from rent + concessional contributions. Over a 20-year working life this strategy frequently outperforms residential investment by 200–400bps per annum on after-tax fund returns, while simultaneously removing landlord risk from the business.
Western Sydney trades and inner-ring professionals dominate the demand
Two borrower archetypes drive the volume. First: Western and South-Western Sydney trade business owners (electrical, mechanical, fabrication, distribution) buying their factory or workshop in Smithfield, Wetherill Park, Ingleburn or Penrith. Second: inner-ring professional service principals (medical, legal, financial planning) buying their strata suite in Chatswood, North Sydney, Hurstville or the CBD. Both archetypes have the SMSF balance ($350k+ typically), the business income to service contributions, and an existing rent payment that can be redirected to the fund.
Recent scenarios we've funded
$1.8M factory, Smithfield — Business Real Property
Two-director engineering business, combined SMSF balance $620k, currently paying $115k market rent to an unrelated landlord. SMSF purchased through bare trust at 70% LVR ($1.26M loan) at 7.85% over 25 years. Business signed a 10-year lease back to the SMSF at the same $115k rent. Net effect: business cost unchanged; ~$108k/year of interest is paid by the SMSF from the rent it now receives; principal amortisation builds the fund's equity in the asset.
$2.4M strata medical suite, Hornsby
Solo dermatologist with $740k SMSF balance, currently leasing premises at $140k. SMSF acquired the suite at 70% LVR ($1.68M) at 7.65%. Combined rent + $50k concessional contributions services the loan comfortably with 1.42× ICR at lender assessment rate. Over 20 years to retirement, the asset transfers into the fund's tax-free pension phase.
$1.2M industrial unit, Penrith — investment
SMSF trustees seeking commercial exposure away from listed equity volatility, no related-party business. Acquired tenanted industrial unit on 5-year lease to an unrelated 3PL operator at $84k rent. 70% LVR ($840k) at 7.95% over 30 years. Liquidity buffer of $120k held in fund post-settlement.
Lender policy in Sydney
Sydney SMSF commercial lenders cap LVR at 70% (75–80% for prime BRP at selected lenders). Minimum loan $250k, maximum typically $3–5M (specialists to $10M+). Minimum SMSF cash post-settlement is usually 10–20% of asset value as a liquidity buffer. Rates 7.0–8.5% for prime, 8.5–10.0% for harder profiles. Structure includes: bare trust deed, custodian/trustee, LBA loan documentation, related-party lease (if BRP). Settlement typically 6–10 weeks due to structure work.
Related
SMSF Commercial Loans in Sydney — FAQ
Questions sophisticated commercial borrowers ask about this market.