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Kembla Grange, NSW

Residential property for future development

This Loan refinanced the Sheaffes Road No. 3 Sub-Trust. The loan was maintained by the Borrower in a prompt and punctual fashion and the Manager undertook a new credit assessment and renewed the loan for a further Term with Loan documentation containing new Loan Terms and Conditions.

Investors in the previous Sheaffes Road No.3 Sub-Trust have been fully repaid.

The Loan is secured by a first registered mortgage over a 9.229ha residential zoned property held for future development in Kembla Grange, NSW, approximately 14kms south-west of the Wollongong CBD and 94kms south of the Sydney CBD.

The Borrower intends to undertake a residential subdivision comprising 36 residential lots and 2 residue lots to yield 130 residential dwellings including villas and townhouses of 400m² to 500m² each. The Borrower has lodged a Development Application and a decision from Council is expected shortly.

The Borrower Group is a long-term client of the Manager who has undertaken substantial and numerous property development projects in Wollongong over the past 25 years.

  • The Loan was advanced at a Loan to Value Ratio of 54%.
  • The Target Return is 6.80% p.a., net of fees and expenses, and is paid to Investors monthly in arrears.
  • The Loan is supported by an unlimited personal guarantee and a General Security Agreement over the Borrower.
  • Interest for the initial 6 months of the Loan Term has been lodged on deposit with the Manager.
  • The Loan Term is 18 months, subject to early or late repayment, from 28 September 2020 to 27 March 2022.

Investment Details

  • Target Return
    6.8% net
  • Loan to Value Ratio
    54%
  • Term
    16 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.