Redfern, NSW

Commercial property DA approved for future re-development

This loan refinanced the Elizabeth Street No. 4 Sub-Trust. The loan was serviced by the Borrower in a prompt and punctual fashion and investors in the previous sub-trust have been fully repaid. The Manager undertook a new credit assessment and renewed the Loan for a further term with Loan documentation containing new Loan Terms and Conditions.

The Loan is secured by first registered mortgage over a vacant commercial property on 827m² of land zoned 'MU1 Mixed Use' and is Development Application (DA) approved for future development. The property is located in the inner-city suburb of Redfern, NSW.

The Security Property holds DA approval for construction of a 4 storey hotel to comprise 58 rooms, basement level car parking and licensed café for 40 patrons.

The Borrower Group is an experienced property developer and is well known to the Manager who has provided multiple loans to the Group over the past 5 years. All facilities have been conducted in a prompt and punctual manner.

The Loan is anticipated to be repaid from the sale of the Security Property or through a refinance into a construction loan.

• The Loan was advanced at a Loan to Value Ratio of 60%.
• The Target Return is 8.95% p.a., net of fees and expenses, and is paid to Investors monthly in arrears.
• The Loan is supported by joint and several guarantees and a General Security Agreement over the Borrower.
• Interest for the initial 6 months of the Loan Term has been lodged on deposit with the Manager. Interest for the remaining Term of the Loan 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 10 July 2023 to 9 July 2024.

Investment Details

• Target Return

  8.95% net

• Loan to Value Ratio

  60%

• Term

  2 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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