Industrial zoned development site
The Loan is secured by a first registered mortgage over a vacant 8.496ha industrial zoned development site in Melton, VIC, 35kms west of the Melbourne CBD.
The property has good exposure to main arterial roads and is effectively a gateway opportunity into Melton. A Bunnings is being developed immediately north of the subject property as an anchor tenant of a 38ha development which will enhance the subject property.
The Borrower intends to submit a Development Application for a mixed-use development including retail/industrial showrooms, a medical centre and a childcare centre on the Security Property.
The purpose of the Loan was to assist with the acquisition of the Security Property for future development. The Borrower has contributed in excess of $3,100,000 towards the purchase and finance costs from their own cash reserves.
The Borrower is an existing Balmain client and a very significant industrial property developer in the Melbourne region. The Group has net assets in excess of $100 million.
- The Loan was advanced at a Loan to Value Ratio of 60%.
- 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 personal and corporate guarantees and General Security Agreements over the Borrower and corporate shareholders.
- The Loan Term is 24 months, subject to early or late repayment, from 1 March 2019 to 28 February 2021.
Target Return7.7% net
Loan to Value Ratio60%
|Security||1st registered mortgage, personal and corporate guarantees and General Security Agreements over the Borrower and its corporate shareholders.|
|Asset||Industrial zoned development site|
Full details of each investment are provided to investors in a Supplementary PDS unique to each particular Sub-Trust.