Rural Residential Property with future development potential
The Loan is secured by a first registered mortgage over a rural-residential greenfield site, located in Bowral, NSW, approximately 124km south west of the Sydney CBD, and within 3km of the Bowral Town Centre.
The purpose of the Loan was to refinance a previous Balmain Discrete Mortgage Income Trusts (BDMIT) sub-trust. The Borrower has conducted the previous sub-trust in a prompt and punctual manner and in accordance with loan documentation.
The Security Property comprises a total of 4ha, currently improved by a well presented 4 bedroom dwelling, manicured gardens and a dam. Excluding the dam, approximately 30,000m2 are considered developable.
The subject site adjoins a retirement village, also owned by the Borrower, which comprises 87 Independent Living Units (ILUs). It is located approximately 3km south of the Bowral Town Centre. Bowral is the main business and entertainment precinct in the Southern Highlands of NSW, and is popular among retirees.
The Borrower Group are experienced property investors and developers in the mixed-use development space. The Borrower Group is well known to the Manager and previous facilities have been conducted in a prompt and punctual manner.
- The Loan was advanced at a Loan to Value Ratio of 65%.
- 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 General Security Agreements over the Borrower and a related corporate entity.
- Interest for the Term of the Loan has been lodged on deposit with the Manager.
- The Loan Term is 12 months, subject to early or late repayment, from 11 July 2022 to 10 July 2023.
Target Return6.7% net
Loan to Value Ratio65%
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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