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.
Target Return6.8% net
Loan to Value Ratio54%
Minimum Initial Investment$10,000
Full details of each investment are provided to investors in a Supplementary PDS unique to each particular Sub-Trust.