Residential & Retail Apartments – Residual Stock Loan
The Loan is secured by first registered mortgages over 32 residential apartments and two (2) retail lots in Ivanhoe, VIC, approximately 12kms north-east of the Melbourne CBD. The Security Properties are part of a 253 apartment development known as 'Ivanhoe Apartments' comprising 248 residential apartments and five (5) retail lots. 192 of the apartments have been sold and 27 retained by the Borrower leaving 19 x 1 bedroom, 9 x 2 bedroom, 4 x 3 bedroom and two (2) retail apartments as security for this Loan.
This facility is a residual stock facility whereby the Loan and LVR will likely be reduced during the Loan Term from individual lot sales. When proceeds are received from the sale of individual lots, these funds will be returned to Investor’s BDMIT Cash Units.
The Security Properties were unencumbered at the time of making the advance. The purpose of the Loan was to provide an equity release for working capital requirements.
The Borrower Group is a well established and experienced Melbourne based property development group with significant net assets.
- The Loan was advanced at a Loan to Value Ratio of 65%.
- 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 joint and several guarantees and a General Security Agreement over the Borrower.
- The Loan Term is 12 months, subject to early or late repayment, from 12 February 2019 to 11 February 2020.
Target Return7.7% net
Loan to Value Ratio57%
|Security||1st registered mortgages, joint and several corporate and personal guarantees and a General Security Agreement over the Borrowers.|
|Asset||32 residential and 2 retail apartments at Ivanhoe, VIC|
Full details of each investment are provided to investors in a Supplementary PDS unique to each particular Sub-Trust.