West Pennant Hills, NSW
In-fill Residential Development Site
This Loan refinanced the Oratava Avenue No. 2 Sub-Trust. The loan was maintained by the Borrower in a prompt and punctual fashion and the Manager undertook a new credit assessment and renewed the Loan for a further term with Loan documentation containing new Loan terms and conditions. Investors in the previous Oratava Avenue No. 2 Sub-Trust have been fully repaid. The Borrower reduced the loan principal by $300,000.
The Loan is secured by way of first registered mortgage over a 16,000m2 residential development site located in the well-established residential suburb of West Pennant Hills, situated approximately 27kms north-west of the Sydney CBD.
The Security Property was recently rezoned from E4 Environmental Living to R2 Low Density Residential, which permits land subdivision and has reduced the minimum allowed lot size from 2,000m2 to 700m2, providing a significant uplift in lot yield. Current zoning allows a potential 15 lot subdivision of the Security Property and the Borrower intends to exercise an option to purchase the adjoining property and lodge a development application for a 21-lot subdivision on the Security Property and adjoining site.
- The Loan was advanced at a Loan to Value Ratio of 20%.
- The Target Return is 7.20% p.a., net of fees and expenses, and is paid to Investors monthly in arrears.
- The Loan is supported by unlimited directors guarantees and a General Security Agreement over the Borrower.
- The Loan Term is 9 months, subject to early or late repayment, from 12 December 2018 to 11 September 2019.
Target Return7.2% net
Loan to Value Ratio20%
|Security||1st registered mortgage, unlimited guarantees and a General Security Agreement over the Borrower.|
|Asset||In-fill Residential Development Site|
Full details of each investment are provided to investors in a Supplementary PDS unique to each particular Sub-Trust.