South Kingsville, VIC

Residential Development Site - Townhouses

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

The Loan is secured by first registered mortgage over a 21,556m² recently rezoned residential development site located in South Kingsville, VIC, approximately 7.5km south west of the Melbourne CBD.

The Borrower has formulated development plans, proposing the construction of 102 x 2 and 3 level townhouses. Permit Approval is expected by October/November 2023.

The valuer considers the highest and best use of the subject property to be in line with the proposed development.

The Security Property is close to public transport, parks, educational facilities, and retail amenities. Newport Train Station and shopping village are only 1.6km to the north, while Spotswood Station and local shops are located approximately 1.8km to the south. Additionally, Newport Lake Reserve is situated around 500m to the south west. Furthermore, numerous early learning, primary, and secondary educational institutions are within a 2km radius.

The Security Property is owned by a Special Purpose Vehicle (SPV) established specifically for the acquisition of the property. The Borrower Group which controls the SPV is an established specialist finance group with specific expertise in property development and funds management.

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 63%.
• The Target Return is 9.20% p.a., net of fees and expenses, and is paid to Investors monthly in arrears.
• The Loan is supported by a corporate guarantee and a General Security Agreement over the Borrower.
• Interest for the Term of the Loan has been lodged on deposit with the Manager
• The Manager has assessed the financial position of the Borrower and Guarantor as part of its credit approval process and is satisfied that they are financially capable to service (pay interest) a loan of this nature.
• The Loan Term is 9 months, subject to early or late repayment, from 31 August 2023 to 30 May 2024.

Investment Details

• Target Return

  9.2% net

• Loan to Value Ratio

  63%

• 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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