Residential Property with Future Development Potential
The Loan is secured by a first registered mortgage over a residential property located within the Leppington Precinct of the South West Growth Centre, approximately 38kms south-west of the Sydney CBD.
The Security Property has a land area of 24,680m2 and is improved with a single storey brick and tile residential dwelling. The property has potential for redevelopment upon re-zoning . The property is positioned within the Leppington Precinct of the South West Growth Centre and is contained within Leppington Stage 1. Sydney Water is in the process of completing sewerage services to the area with handover anticipated in April 2019. NSW Planning & Environment correspondence indicates that re-zoning will align with the completion of infrastructure delivery.
The purpose of the Loan was to release equity back to the Borrower. The Property was owned unencumbered prior to this advance.
The Borrower Group is a substantial and successful residential land developer with over 20 years’ experience in land subdivisions in the western suburbs of Sydney. The Group is well known to the Manager and previous loans have been conducted in a prompt and punctual manner.
- Interest is pre-paid for the Loan Term.
- The Loan was advanced at a Loan to Value Ratio of 55%.
- The Target Return is 7.70% p.a., net of fees and expenses, and is paid to Investors monthly in arrears.
- The Loan is supported by unlimited guarantees and a General Security Agreement over the Borrower.
- The Loan Term is 12 months, subject to early or late repayment, from 31 Jan 2019 to 30 Jan 2020.
Target Return7.7% net
Loan to Value Ratio55%
|Security||1st registered mortgage, unlimited director's guarantee and a General Security Agreement over the Borrower|
|Asset||Residential property with future development potential at Leppington, NSW|
Full details of each investment are provided to investors in a Supplementary PDS unique to each particular Sub-Trust.