Fully Invested

Box Hill, VIC

Commercial property – permit approved for redevelopment

The Loan is secured by first registered mortgages over three (3) adjoining double level office buildings with future development potential in Box Hill, VIC. The three (3) properties have a total land area of 1,219m2 and are zoned ‘Commercial 1’.

The suburb of Box Hill is located approximately 14km east of the Melbourne CBD and the Security Properties are situated within the Box Hill Central Activities Area, characterised by a mix of commercial, retail, hospitality, educational and residential land uses. The precinct surrounding the site is undergoing progressive renewal, with a number of medium to high density developments planned or under construction.

The land holding benefits from a Planning Permit approved by City of Whitehorse on October 2020 for the construction of a mixed use multi storey building with associated basement and car park. The Borrower has requested amendments to the permit.

The purpose of the Loan was to refinance a previous Balmain Discrete Mortgage Income Trusts (BDMIT) sub-trust known as the Ellingworth Parade No. 3 Sub-Trust. The Borrower conducted the previous sub-trust in a prompt and punctual manner and in accordance with loan documentation.

The Borrower Group is well known to the Manager and is an experienced property development and investment group based in Melbourne and have a significant net asset position.

  • The Loan was advanced at a Loan to Value Ratio of 50%.
  • The Target Return is 6.25% 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 is to be paid by the Borrower quarterly in advance. 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, from 18 July 2022 to 17 July 2023.

Investment Details

  • Target Return
    6.25% net
  • Loan to Value Ratio
    50%
  • Term
    11 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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