Sunbury, VIC

A significant development site identified as a Major Town Centre

The Loan is secured by first registered mortgage over a significant development site Permit Approved for a Major Town Centre located in, Sunbury VIC, approximately 38km north west of Melbourne’s CBD.

The purpose of the Loan was to refinance a previous Balmain Discrete Mortgage Income Trusts (BDMIT) sub-trust known as the Odysseus Drive Sub-Trust. The Borrower conducted the previous sub-trust in a prompt and punctual manner.

The site comprises a 10.33ha 'Urban Growth Zone – Schedule 9' zoned allotment situated within the endorsed Sunbury South Urban Design Framework Plan (UDFP). Under the UDFP, the site is approved with a maximum floor space of 25,000m² for retail and 10,000m² for commercial buildings.

A Planning Permit for Stage 1 of the site, approved October 2022, allows for the development of a Town Centre with a commercial precinct that will include Coles, Kmart, Quick Service Retail (QSR), mini majors such as childcare, swim school, pharmacy, specialty retailers, F&B, medical centre/super clinic and co-working accommodation.

The Borrower has achieved four (4) major agreements for lease from Coles, Kmart, McDonalds and BP which will generate substantial net annual income.

The Security Property is owned by a Special Purpose Vehicle (SPV) established specifically for the acquisition and development of the Master Planned project.

The Borrower Group is a substantial Melbourne based developer who has 30 years’ experience in the development of residential subdivisions in most of Australia’s major population centers.

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 65%.
• The Target Return is 8.60% p.a., net of fees and expenses, and is paid to Investors monthly in arrears.
• The Loan is supported by corporate guarantees and a General Security Agreement over the Borrower and a related corporate entity.
• Interest for the initial 8 months of the Loan Term 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 18 months, subject to early or late repayment, from 29 May 2025 to 28 November 2026.

Investment Details

• Target Return

  8.6% net

• Loan to Value Ratio

  65%

• Term

  18 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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