Commercial property with redevelopment potential in Preston, VIC
The Loan is secured by a first registered mortgage over a commercial property in the residential suburb of Preston, VIC, approximately 8.5km north of the Melbourne CBD.
The Security Property is improved by a single-level brick warehouse building with a Gross Building Area (GBA) of approximately 1,815m2. The ‘Mixed Use’ zoning provides for future redevelopment potential. The site is 2,276 m2. The Borrower ultimately intends to redevelop the site as a high-density residential development. The Security Property is subject to a Development Plan Overlay (DPO), which has a preferred maximum building height of 8 storeys.
The warehouse building is currently tenanted on a month to month basis.
The Security Property is located in the Inner Northern suburb of Preston and within 800m of the Thornbury train station, the High Street retail precinct and Preston South Shopping Centre.
The Borrower Group comprises high net worth individuals who own a number of successful bakeries in Melbourne. They are experienced property investors who have also undertaken a small number of residential developments
- The Loan was advanced at a Loan to Value Ratio of 60%.
- 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 multiple joint and several guarantees and a General Security Agreement over the Borrower.
- Interest has been prepaid for the full Loan term.
- The Loan Term is 18 months, subject to early or late repayment, from 25 February 2021 to 24 August 2022.
Target Return7.7% net
Loan to Value Ratio60%
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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