Fully Invested

Redfern and St Ives, NSW

Commercial property for future re-development and residential townhouse

This Loan refinanced the Elizabeth Street No. 2 Sub Trust. The loan was serviced by the Borrower in a prompt and punctual fashion and Investors in the original sub-trust have been fully repaid. The Manager undertook a new credit assessment and renewed the Loan for a further term with Loan documentation containing new Loan Terms and Conditions.

The Loan is secured by first registered mortgage over an older style commercial property situated on 829m2 of land zoned 'B4 Mixed Use' and DA approved for future development. The property is located in the inner-city suburb of Redfern, NSW, and the Loan has additional security of a first mortgage over a recently completed residential townhouse in St Ives, NSW.

The Redfern property holds development approval for construction of a 4 storey hotel to comprise 58 rooms, basement level car parking and licensed café for 40 patrons.
The St Ives Security Property is a residual townhouse from the Borrower Group’s recently completed development which comprised a total of 12 residential townhouses.

The Borrower Group is an experienced property developer and is well known to the Manager who has provided multiple loans to the Group over the past 3 years.  All facilities have been conducted in a prompt and punctual manner.

  • The Loan was advanced at a Loan to Value Ratio of 55%.
  • The Target Return is 6.70% 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 for the initial 3 months of the Loan has been lodged on deposit with the Manager. Interest for the remaining Term of the Loan is to be paid by the Borrower monthly in advance via direct debit.
  • The Manager has assessed the financial position of the Borrower and Guarantors as part of its credit approval process and is satisfied that they are financially capable to service a loan of this nature.
  • The Loan Term is 12 months, subject to early or late repayment, from 30 June 2021 to 29 June 2022.

Investment Details

  • Target Return
    6.7% net
  • Loan to Value Ratio
    55%
  • Term
    9 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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