Rural residential property with future development potential
The Loan is secured by a first registered mortgage over an 81.52ha rural residential property with development potential in Werribee, VIC, approximately 40km south west of the Melbourne CBD.
The Security Property is located within the Urban Growth Boundary, identified within the proposed Werribee Junction Precinct Structure Plan (PSP) which is at pre-commencement stage.
The Security Property is situated on 81.52ha of Farming Zone (FZ) land. The property is currently improved with an older style weatherboard dwelling, ancillary shedding, a large machinery shed and modest equine facilities.
The purpose of the Loan was to refinance a previous Balmain Discrete Mortgage Income Trusts (BDMIT) sub-trust and provide a release of equity for working capital purposes.
The Borrower Group are experienced business owners and property investors who hold a significant property portfolio. The Borrower Group intend to hold the Security Property until re-zoning is achieved.
- The Loan was advanced at a Loan to Value Ratio of 47%.
- The Target Return is 6.40% p.a., net of fees and expenses, and is paid to Investors monthly in arrears.
- The Loan is supported by multiple unlimited joint and several personal & corporate 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 20 April 2022 to 19 April 2023.
Target Return6.4% net
Loan to Value Ratio47%
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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