Fully Invested

Essendon, VIC

Commercial site comprising four retail buildings - future mixed-use redevelopment site

The Loan is secured by a first registered mortgage over a large 6,532m2 commercial property in the well-established and premier residential suburb of Essendon, VIC, approximately 9km north west of the Melbourne CBD that has redevelopment potential.

The Security Property is currently zoned ‘Commercial 1’ and is improved with a number of retail buildings providing three (3) tenancy areas covering a total area of 2,531m2 which includes a Coles Supermarket and a 7-Eleven service station.

The Borrower Group intends to redevelop the property into a mixed-use development, subject to Planning Permit.

The proposed redevelopment of the site is anticipated to yield upwards of 200 residential apartments a Coles Supermarket (3,970m2) and retail and commercial accommodation totalling 1,880m2 representing a total Gross Floor Area in excess of 25,000m2.

The purpose of the Loan was to refinance an existing Balmain facility over the Security Property. The previous loan was conducted in an efficient manner and in accordance with loan terms.

The Borrower Group are an experienced Melbourne based property development company, primarily involved in acquiring sites for re-development into mixed-use medium to high density residential/retail projects located in and around Melbourne metropolitan.   

  • The Loan was advanced at a Loan to Value Ratio of 65%.
  • The Target Return is 7.25% p.a., net of fees and expenses, and is paid to Investors monthly in arrears.
  • The Loan is supported by multiple joint and several guarantees and a General Security Agreement over the Borrower.
  • Interest for the difference between net rental income and monthly payments is lodged on deposit with the Manager.
  • The Loan Term is 24 months, subject to early or late repayment, from 3 February 2021 to 2 February 2023.

Investment Details

  • Target Return
    7.25% net
  • Loan to Value Ratio
    65%
  • Term
    22 Months

Full details, unique to each investment, are provided to Investors in a Supplementary PDS. These detailed Supplementary PDS’s are only available to Investors in Balmain Private.

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