Grantham Farm, NSW

Residential subdivision site - Residual Stock Loan

The Loan is secured by first registered mortgage over a 4.91ha residential subdivision that has works largely completed but is not currently registered, located in Grantham Farm, NSW, approximately 24km north west of the Parramatta CBD and approximately 47km north west of the Sydney CBD.

The purpose of the Loan was to assist with the acquisition of the Security Property. The Borrower had access to the site since exchanging contracts in 2021 and has completed subdivision works on the site to date from their own cash reserves.

The development is for the subdivision of the land into 78 residential lots and two (2) residue lots. Additionally, the Borrower lodged a separate Development Application for the subdivision of the remaining two (2) lots into 10 residential lots and one (1) residue lot, which is currently pending approval.

The surrounding development predominantly comprises rural land holdings and residential land subdivision developments.

The Borrower Group is an established developer specialising in residential land development in north west Sydney. They have successfully developed 14 residential land and house projects, resulting in the delivery of over 700 lots.

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 58%.
• The Target Return is 8.15% 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.
• The Borrower is to make monthly interest payments 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 4 June 2024 to 3 June 2025.

Investment Details

• Target Return

  8.15% net

• Loan to Value Ratio

  58%

• Term

  8 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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