6 completed residential apartments - Residual Stock Loan
The Loan is a residual stock loan secured by first registered mortgage over six (6) completed residential apartments in Schofields, NSW, approximately 45km west of the Sydney CBD.
The Security Properties form part of a 119 unit residential apartment building known as 'Kew Schofields – Stage 1A'. Stage 1A comprises a 5 storey residential building consisting of 119 residential apartments and 147 car spaces over a 2 level basement. To date, the Borrower has sold 82 of the 119 apartments leaving 37 residual apartments of which six (6) form the Security Properties. The Security Properties comprise two (2) x 1 bedroom, three (3) x 2 bedroom and one (1) x 3 bedroom apartments.
This facility is a residual stock facility whereby the Loan and LVR will reduce during the Loan Term from sales of the completed Security apartments. On completion of the sale of an individual Security Property, the Loan facility will be reduced by the agreed net sale proceeds and these funds will be returned to Investors.
The Borrower Group operates a successful property development business and has previously completed a range of development projects in Sydney and is currently completing a luxury apartment project in the Eastern Suburbs with funding provided by Balmain.
- The Loan was advanced at a Loan to Value Ratio of 65%.
- The Target Return is 6.95% p.a., net of fees and expenses, and is paid to Investors monthly in arrears.
- The Loan is supported by a personal guarantee and a General Security Agreement over the Borrower.
- Interest payments for the Loan Term have been lodged on deposit.
- The Loan Term is 6 months, subject to early or late repayment, from 18 March 2021 to 17 September 2021.
Target Return6.95% net
Loan to Value Ratio65%
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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