Permit approved development site
The Loan is secured by a first registered mortgage over a 785m2 permit approved development site in Cremorne, VIC, approximately 2km south east of the Melbourne CBD.
The property is zoned 'Commercial 2' and is currently leased as a car park and advertising billboard, generating rental income. The Borrower has achieved development approval for the construction of a 10 level, 96 key serviced apartment building with site signage.
The purpose of the Loan was to refinance existing land debt and provide an equity release to assist with the pre-construction costs.
The Security Property is well situated within close proximity to Melbourne’s stadium precinct and Richmond Railway Station.
The Borrower Group is a boutique property and business investment and development company that has been operating for over 30 years.
- The Loan was advanced at a Loan to Value Ratio of 60%.
- The Target Return is 5.70% 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 is to be paid by the Borrower monthly in advance. The Manager has assessed the financial position of the Borrower and Guarantors and is satisfied that they are financially capable to service a loan of this nature.
- The Loan Term is 12 months, subject to early or late repayment, from 29 March 2022 to 28 March 2023.
Target Return5.7% net
Loan to Value Ratio60%
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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