Future development site
The Security Property comprises a future development site within the city fringe suburb of Docklands, VIC, approximately 1.5km west of the Melbourne CBD.
The subject property has a total developable area of 4,535m2. A substantial portion (3,115m2) of the subject property is contained in the form of 'air rights', to be constructed above the existing District Docklands Shopping Centre structure. The site area is 1,420m2.
A Development Plan has been approved for the construction of a multi-level building, to a maximum Gross Floor Area of 40,000m2. A planning permit has not yet been issued, although given the existing Development Plan approval, it is anticipated that approval would be readily granted.
The purpose of the Loan was to refinance existing debt over the Security Property and to provide an equity release for working capital purposes.
The Borrower Group is a diversified mixed-use real estate developer and investor based in Melbourne. They have successfully completed two (2) similar Docklands projects in the past 6 years.
- The Loan was advanced at a Loan to Value Ratio of 55%.
- The Target Return is 5.60% 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 first 6 months of the Loan Term has been lodged on deposit with the Manager.
- The Loan Term is 12 months, subject to early or late repayment, from 25 February 2022 to 24 February 2023.
Target Return5.6% net
Loan to Value Ratio55%
Minimum Initial Investment$10,000
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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