Fully Invested

Box Hill, VIC

Commercial – with future development potential

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

The suburb of Box Hill is located approximately 15kms 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.

A Planning Application has been lodged proposing a 15 storey office building development. The Borrower expects the application to be determined by the Victorian Civil and Administrative Appeals Tribunal (VCAT) by end of 2020.

The purpose of the Loan was to refinance a previous Balmain Discrete Mortgage Income Trusts (BDMIT) sub-trust known as the Ellingworth Parade 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, that has a significant net asset position.

  • The Loan was advanced at a Loan to Value Ratio of 50%.
  • The Target Return is 7.20% p.a., net of fees and expenses, and is paid to Investors monthly in arrears.
  • The Loan is secured by first registered mortgages, multiple joint and several personal and corporate guarantees and General Security Agreement over the Borrower.
  • The Loan Term is 12 months, subject to early or late repayment, from 30 June 2020 to 29 June 2021.

Investment Details

  • Target Return
    7.2% net
  • Loan to Value Ratio
  • Term
    10 Months

Loan Information

Loan Amount $5,425,000
Security 1st registered mortgages, multiple joint and several personal and corporate guarantees and a General Security Agreement over the Borrower
Asset Three adjoining office buildings with future development potential

Full details of each investment are provided to investors in a Supplementary PDS unique to each particular Sub-Trust.