Fully Invested

Melbourne, VIC

Commercial Retail/Office

The Loan is secured by a first registered mortgage over a five (5) level commercial office/retail building situated in a premium, central Melbourne CBD location, well serviced by retail, hospitality and hotel amenities.

The purpose of the Loan was to assist in the purchase of the Security Property.

The Borrower exchanged contracts to acquire the property without a planning permit and has subsequently secured an approved permit which allows for the construction of a 13 level, 144 room hotel with two basement levels and a rooftop terrace bar.

The Borrower Group is an experienced Melbourne based developer which has completed a range of major commercial and residential developments. The Borrower Group intends to develop the Security Property once a hotel manager is appointed and the Loan will likely be repaid by development finance. Personal and corporate guarantees from the Borrower Groups key entities have been provided.

  • Interest is pre-paid for the Loan Term.
  • The Loan was advanced at a Loan to Value Ratio of 55%.
  • The Target Return is 7.45% p.a., net of fees and expenses, and is paid to Investors monthly in arrears.
  • The Loan is supported by joint and several personal and corporate guarantees and a General Security Agreement over the Borrower.
  • The Loan Term is 12 months, subject to early or late repayment, from 25 January 2019 to 24 January 2020.

Investment Details

  • Target Return
    7.45% net
  • Loan to Value Ratio
    55%
  • Term
    10 Months
  • Minimum Investment
    $10,000

Loan Information

Loan Amount $11,000,000
Security 1st registered mortgages, joint and several personal and corporate guarantees and a General Security Agreement over the Borrower
Asset Commercial office/retail building with short term leases in Melbourne CBD, VIC

Full details of each investment are provided to investors in a Supplementary PDS unique to each particular Sub-Trust.