Completed Residential Lots – Residual Stock
The Loan is a residual stock loan secured by a first registered mortgage over 17 completed residential lots located within a recently completed residential estate, and one (1) residual lot in Cabarlah, QLD, approximately 146km west of the Brisbane CBD and 17km north of Toowoomba.
The purpose of the Loan was to refinance existing debt over the Security Property and to assist with the sell down of individual Security lots.
The estate is a staged residential subdivision across 60ha, and has yielded 57 residential lots ranging between 3,500m2 and 5,000m2 per lot, plus one (1) residual lot of 4ha. Stage 1 consisted of 29 lots which have been sold. Stage 2 consists of 28 lots, 11 of which have sold, with the remaining 17 comprising the Security. Stage 3 is a residual lot over 4ha, which is to be subdivided into five (5) individual lots.
This Loan is a residual stock facility whereby the loan and LVR will reduce during the Loan Term from sales of the completed Security Properties.
The Borrower Group has a successful business in the IT sector, and have completed various development projects together. The first stage of the project sold down successfully.
- The Loan was advanced at a Loan to Value Ratio of 64%.
- The Target Return is 6.00% 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 Manager has assessed the financial position of the Borrower and Guarantors and is satisfied that they are financially capable to service a loan of this nature.
- The Loan Term is 18 months, subject to early or late repayment, from 10 June 2021 to 9 December 2022.
Target Return6% net
Loan to Value Ratio64%
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.
Start now by investing in an individual loan to commence building your own first mortgage investment portfolio with Balmain Private.