Hindmarsh Valley, SA

Vacant land rezoned for residential development

The Loan is secured by first registered mortgage over 65.1ha vacant land rezoned for residential development located in Hindmarsh Valley, SA.

The Security Property is conveniently located near all major amenities with Coles, Aldi and Bunnings located within 1km, Encounter Lutheran College within 500m and McCracken Country Club, Hayborough foreshore, Hindmarsh River, and Urimbirra Wildlife Park all positioned nearby.

The purpose of the Loan was to assist with the acquisition of the Security Property.

The Security Property is zoned 'MPN – Master Planned Neighbourhood'. The zoning provides for a diverse range of housing and supports low to medium density neighbourhoods. A Development Application (DA) was approved to subdivide the existing two (2) lots into four (4) super lots for residential purposes.

The Manager is advised that the Borrower proposes to amend the existing DA to accommodate one (1) of the super lots as a Land Lease Community (LLC) with 350 allotments and then sell the LLC. 

The Manager is advised that the largest unit holder of the Borrower, and a personal and corporate guarantor, has over 17 years’ experience in delivering master planned communities and LLC projects of this nature and that there is sustained demand forecast for residential land in Victor Harbor until at least 2030.

• The Loan was advanced at a Loan to Value Ratio of 50%.
• The Target Return is 10.45% 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 and a related corporate entity.
• Interest for the full Term of the Loan has been lodged on deposit with the Manager.
• 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 16 June 2023 to 15 June 2024.

Investment Details

• Target Return

  10.45% net

• Loan to Value Ratio

  50%

• Term

  1 Month

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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