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Fortitude Valley, QLD

Completed residential apartments

The Loan is a Residual Stock Loan secured by a first registered mortgage over 150 strata titled residential apartments in the recently completed ‘Utopia’ development in Fortitude Valley, QLD, approximately 1.5kms north east of the Brisbane CBD.

'Utopia' is a new residential complex completed by the Borrower Group in early 2020. The development comprises 300 apartments as well as ground level retail and commercial tenancies over 25 storeys. Of the 300 apartments, 106 have been sold, 150 form security for this Loan and 44 are held unencumbered by the Borrower Group.

The 150 units in the security pool comprise a mixture of one, two, and three-bedroom units ranging in size from 50m2 to 115m2.

The purpose of the Loan was to refinance construction finance.

The Director of the Borrower is an Australian permanent resident who has a background in breweries and chain restaurants in China. More recently the Borrower Group has diversified into property development.

  • The Loan was advanced at a Loan to Value Ratio of 57%.
  • The Target Return is 7.25% 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 calculated as sufficient for the Loan Term has been lodged on deposit with the Manager.
  • The Loan Term is 18 months, subject to early or late repayment, from 11 August 2020 to 10 February 2022.

Investment Details

  • Target Return
    7.25% net
  • Loan to Value Ratio
    52%
  • Term
    15 Months
  • Minimum Initial Investment
    $10,000

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