Bowral, NSW

Rural Residential Property with future development potential

The purpose of the Loan was to refinance the previous Balmain Discrete Mortgage Income Trust (BDMIT) sub-trust known as the Wiseman Road No. 3 Sub-Trust. The Borrower conducted the previous sub-trust in a prompt and punctual manner.

The Loan is secured by a first registered mortgage over a 4ha freehold residential property, located in Bowral, NSW, approximately 123km south west of the Sydney CBD, and within 5km of the Bowral Town Centre.

The Security Property comprises a total of 4ha, currently improved by a well-presented 4 bedroom dwelling, manicured gardens and a dam.

The subject site adjoins a retirement village, also owned by the Borrower, which comprises 87 Independent Living Units (ILUs).

A DA for the Security Property and an adjoining property has been lodged with the Wingecarribee Council for the demolition of existing improvements and development of a retirement village containing 74 independent living units (ILUs), a separate community centre building and associated roads and infrastructure. This application is being processed.

The property is well located near multiple services and amenities. Bowral Town Centre is approximately 5km north west of the subject and includes the Bowral & District hospital as well as local shopping facilities. Moreover, numerous educational facilities such as the Southern Highlands Christian, Bowral High School, Bowral Public School, Chevalier College, Oxley College and St Thomas Aquinas Catholic Primary School are all in close proximity.

The subject is well connected to public transport networks with public buses available within close proximity and Bowral Railway Station located approximately 5.5km north west of the subject.

The Borrower Group are experienced property investors and developers in the mixed-use development space. The Borrower Group generates substantial income through its real estate holdings as well as holding substantial net assets.

The Borrower Group is well known to the Manager who has provided multiple loans to the Group. All facilities have been conducted in a prompt and punctual manner.

• The Loan was advanced at a Loan to Value Ratio of 65%.
• 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 multiple joint and several guarantees and a General Security Agreement over the Borrower and a related corporate entity.
• Interest for the Term of the Loan has been lodged on deposit with the Manager.
• The Loan Term is 12 months, subject to early or late repayment, from 28 July 2023 to 27 July 2024.

Investment Details

• Target Return

  8.95% net

• Loan to Value Ratio

  65%

• Term

  3 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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