Fully Invested

Bringelly, Killara and Pymble, NSW

Large rural land holding within South West Growth Zone to be re-zoned residential, and two residential properties

The Loan refinanced a previous Balmain Discrete Mortgage Income Trusts (BDMIT) sub-trust known as The Northern Road Sub-Trust. The Manager undertook a new credit underwrite, secured further properties (the Killara and Pymble properties) and made a further advance to provide funds for further planning costs and other expenses.

Investors in the Northern Road Sub-Trust have been fully repaid.

The Loan is secured by a 1st registered mortgage over a substantial land holding comprising an area of 73ha in Bringelly, NSW, 58km south west of the Sydney CBD, 21km west of the Liverpool CBD and 7km from the new Western Sydney (Nancy Bird Walton) Airport.

The Loan is further secured by first registered mortgages over residential properties in Killara and Pymble, NSW.

The Bringelly property is zoned 'RU1 Primary Production' under Camden Local Environmental Plan 2010 and is located within the South Creek West (SCW) precinct of the South West Growth Area (SWGA) which has been released by the NSW Planning Department as a Designated Growth Precinct.

The Bringelly property is located near to emerging centres and employment areas, the largest of which is the future Western Sydney Aerotropolis comprising an 11,200ha greenfield precinct being planned and developed around the future Western Sydney (Nancy Bird Walton) Airport. The Western Sydney Aerotropolis is being planned as a highly connected, technology advanced city and is expected to accommodate 139,000 jobs over the coming decades. Other nearby centres include Oran Park Town centre to the south and the emerging centre of Leppington to the east.

The future Western Sydney (Nancy Bird) Airport is currently under construction and is located 7km to the north of the Bringelly property. The airport will be an international air freight hub in Australia in the middle of the Brisbane-Sydney-Melbourne axis.

The Bringelly property is located in the southern section of the South West Creek (SWC) precinct of the South West Growth Area (SWGA). The Borrower has engaged Urbis Consultants and Douglas Partners Engineers to prepare an Urban Design Concept and Land Capability Assessment and is working closely with Camden Council to prepare the planning and design for the rezoning of Bringelly Sub-Precinct 2. This includes an indicative layout plan.

The subject area is proposed to be rezoned into a mixture of R2 Low Density Residential, R3 Medium Density Residential, RE1 Public Recreation and E2 Environment Conservation. The Planning Proposal package was lodged with Camden Council in April 2021. The rezoning process is anticipated to take at least 18 months.

The adjoining land holding (immediately to the south of the Security Property) comprising circa 136ha, has recently been rezoned for residential development.

The Borrower Group are experienced property investors and developers based in Sydney. The Borrower Group generates substantial income through its real estate holdings as well as holding substantial net assets.

The Borrower Group is well known to the Manager who has provided multiple loans to the Group.  All facilities have been conducted in a prompt and punctual manner.

  • The Loan was advanced at a Loan to Value Ratio of 66%.
  • The Target Return is 9.20% 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 General Security Agreements over the Borrower and related entities.
  • Interest for the Term of the Loan has been lodged on deposit with the Manager.
  • 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 12 months, subject to early or late repayment, expiring 16 December 2022.

Investment Details

  • Target Return
    9.2% net
  • Loan to Value Ratio
    66%
  • Term
    5 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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