Fully Invested

CBD Melbourne, VIC

Commercial property with future development potential

The Loan is secured by a first registered mortgage over a 10 storey commercial office building in Melbourne CBD. The purpose of the Loan was to assist with the acquisition of the security property.

The site is a 956m2 rectangular block situated on the northern side of Little Collins Street and occupies a central location within the Western Core precinct of the Melbourne CBD.
Typical of a CBD location, the property is highly accessible via arterial roads and public transport networks.The Security Property was constructed in circa 1986 and comprises a basement car park level, ground floor and 10 upper levels. The property was refurbished in 1993 and again in 2006.

The property is currently vacant and the Borrower has engaged agents to manage the lease up of the building. The Security Property benefits from a Planning Permit granted by the City of Melbourne allowing redevelopment and demolition of the existing improvements into a mixed use building including residential hotel and retail premises over 22 levels comprising 238 rooms. The Borrower intends to focus on the lease up of the property in the short-term however may proceed with the Planning Permit at a later date.

The Borrower is one of Melbourne’s largest private real estate proprietors with a significant portfolio comprising of commercial and residential assets

  • The Loan was advanced at a Loan to Value Ratio of 59%.
  • The Target Return is 5.35% 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 for the initial 12 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 29 Jul 2021 to 28 Jan 2023.

Investment Details

  • Target Return
    5.35% net
  • Loan to Value Ratio
    59%
  • Term
    13 Months

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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