Sydney-based private credit firm Gemi Investments has suspended redemptions from its $300 million First Mortgage Fund after overdue repayments from property developers, including those linked to embattled publican Jon Adgemis.
The fund, which holds 70% of its loans in commercial real estate, has faced challenges from high interest rates, vacancy rates, and rising construction costs.
Gemi’s head of investor relations, Michael Glatter, informed investors that redemptions were halted to maintain adequate cash levels in the fund.

Gemi, which has lent millions to Adgemis’ hospitality ventures, including a $54.8 million loan for the development of Noah’s Backpackers in Bondi, had marketed loans with inflated property valuations.
Despite these challenges, Gemi has reported no losses in the First Mortgage Fund since its launch in 2021, targeting a 9% return.
However, investors remain concerned as the firm halts redemptions amid growing pressures in the commercial property sector.
Source: AFR.