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 45km south west of the Sydney CBD.
The Security Property has a land area of 40,460m2 and is improved with two single residential dwelling and miscellaneous ancillary improvements. The property has potential for redevelopment upon rezoning.
The Security Property is contained within Stage 2 of the Leppington Precinct of the South West Growth Centre. Correspondence from planning authorities indicates that the rezoning progress is in advanced stages.
Following completion of this rezoning process, it is assumed the Security Property will be rezoned to part R2 Low Density Residential and part R3 Medium Density Residential.
The purpose of the Loan was to assist in the purchase of the Security Property.
The Borrower Group has prepared a development application and corresponding plans for an 86 lot residential subdivision.
The Borrower Group is a substantial and successful residential land developer with over 25 years’ experience in land subdivisions in the western suburbs of Sydney.
The Loan is anticipated to be refinanced for construction at the end of the Loan Term or repaid from Borrower Group profits.
- The Loan was advanced at a Loan to Value Ratio of 60%.
- 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 a Director's guarantee and a General Security Agreement over the Borrower.
- Interest for the initial 3 months of the Loan has been lodged on deposit.
- The Loan Term is 12 months, subject to early or late repayment, from 8 June 2021 to 7 June 2022.
Target Return6.95% 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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