Commercial Property - Future development site
The Loan is secured by a first registered mortgage over a 17,010m2 commercial future development site located in the Logan City suburb of Beenleigh, QLD, approximately 36km south east of the Brisbane CBD.
The Security Property benefits from a high degree of exposure to passing traffic. The property is vacant, mostly cleared, and levelled.
The site is zoned 'Mixed Use'. A Code Assessable Development Application for the Security Property was lodged with Logan City Council in October 2021. The application is for a 6,862m2 retail building with a freestanding tavern of 1,635m2. Council have issued a request for information, identifying only technical issues in their response. It is anticipated that the DA will be approved within the next 3 months.
The purpose of the Loan was to acquire the Security Property. The Loan is anticipated to be refinanced for construction at the end of the Loan Term.
The Borrower is a Joint Venture between two (2) property finance and investment companies. The Directors have substantial experience in commercial property investment and development, developing over $200MM in commercial property across a range of sectors over the last 10 years.
A Director of the Borrower is well known to the Manager. 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 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 General Security Agreement over the Borrower.
- Interest for the Term of the Loan has been lodged on deposit with the Manager.
- The Loan Term is 6 months, subject to early or late repayment, from 1 March 2022 to 31 August 2022.
Target Return5.25% net
Loan to Value Ratio55%
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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