Fully Invested

Wollert, VIC

Rural residential property within Urban Growth Boundary identified for potential industrial development.

The Loan is secured by a first registered mortgage over a rural residential property located within the Urban Growth Boundary of the Wollert PSP in Wollert, VIC, approximately 26km north of the Melbourne CBD.

The property represents a medium term development holding identified for future industrial/employment development within the approved Wollert Precinct Structure Plan (PSP).

The Wollert PSP covers 1,434ha and incorporates three main residential precincts and an employment precinct. The area is expected to accommodate approximately 35,000 to 40,000 people over the next several decades and approximately 8,000 job opportunities will be created.

The Security Property is within the Northern Growth Corridor Plan (NGCP) situated within proximity to the Epping and Craigieburn town centres, which provide services and facilities complementing residential occupation and proposed industrial use.

The Security Property is zoned Urban Growth and has a gross area of 4.07ha and developable area of 2.84ha.

The Security Property is currently used as a rural residential property improved with a 1970’s brick house. The existing dwelling is considered of no added value in context of the highest and best use of the subject property. Current improvements are not to be demolished without the consent of the Manager.

The purpose of the Loan was to refinance a previous Balmain Discrete Mortgage Income Trusts (BDMIT) loan secured by the Security Property. The Borrower conducted the previous loan in a prompt and punctual manner and in accordance with loan documentation.

Contracts for the sale of the Security Property were exchanged on 29 August 2020 under a terms contract of sale with an 18 month settlement. Settlement Date under the contract is 29 February 2022. Therefore, the Loan will likely be repaid on the earlier of the Settlement of the contract of sale on 29 February 2022 or the Maturity Date of the Loan on 25 April 2022.

The Borrower Group is a long term client of Balmain and have borrowed and repaid multiple loans over a number of years. All dealings have been conducted in a prompt and punctual manner and in accordance with loan documentation.

  • The Loan was advanced at a Loan to Value Ratio of 55%.
  • The Target Return is 6.95% 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.
  • The Loan Term is 14 months, subject to early or late repayment, from 26 February 2021 to 25 April 2022

Investment Details

  • Target Return
    6.95% net
  • Loan to Value Ratio
    55%
  • Term
    12 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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