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North Melbourne, VIC

17 completed residual residential apartments - Residual Stock Loan

This Loan is a Residual Stock Loan secured by first registered mortgage over 17 residential apartments located within a newly completed mixed-used development known as ‘Arden Gardens’ in North Melbourne, VIC, approximately 3km north west of the Melbourne CBD.

The Arden Gardens development was completed in July 2019 and comprises of a mixed-use development that includes a Woolworths supermarket, BWS and various specialty shops. The residential component incorporates a podium, together with two (2) towers rising 9 and 15 levels, consisting of 299 total apartments.

Of the original 299 residential lots, 238 have now sold and settled. The construction loan has been repaid in full and the residual Security Properties were unencumbered.

The purpose of the Loan was to provide the Borrower an equity release secured against 17 of the residual apartments for business investment purposes.

The Borrower Group is a syndicate of investors and established development group, specialising and focusing on mixed-use inner-city Melbourne developments.

The Loan is anticipated to be repaid from the sale of the individual Lots.

  • The Loan was advanced at a Loan to Value Ratio of 65%.
  • The Target Return is 5.25% 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 Specific Security Agreement over the Borrower.
  • Interest calculated as sufficient for the Term of the Loan has been lodged on deposit.
  • The Loan Term is 18 months, subject to early or late repayment, from 1 October 2021 to 31 March 2023

Investment Details

  • Target Return
    5.25% net
  • Loan to Value Ratio
    65%
  • Term
    15 Months
  • Minimum Initial Investment
    $10,000

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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