Lilydale, VIC

Future residential development site

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

The Loan is secured by first registered mortgage over a single level residential dwelling located on 1,012m² of regular shaped residential land located in Lilydale, VIC, approximately 36km north east of the Melbourne CBD.

The subject is presently improved by a single level dwelling and a garage to the rear, which is considered to have limited added value.

The dwelling, however, is of reasonable condition and can generate rental income while the town planning permit is being obtained.

The site is zoned 'Residential Growth' (RGZ1), and generally surrounded by single dwellings, interspersed with modern townhouse developments.

The Borrower is exploring two (2) proposed development options:

• Ten (10) x 3 storey townhouses or
• Nine (9) x 3 storey townhouses

The valuer considers the site to be suitable for redevelopment for a medium density townhouse style development and notes that Lilydale is an established suburb of Melbourne, which historically has a reasonable level of underlying demand particularly from first home buyers.

The subject site is conveniently located near necessary services and amenities. The Lilydale retail precinct is located approximately 1km to the east, whilst the Chirnside Park Shopping Centre is located approximately 3km to the west, offering more comprehensive retail. Additionally, Victoria Road Primary School, Lilydale Heights College, Lilydale High School, St. Patricks Primary School and Lilydale Primary School are all within 1.5km of the subject property.

The Borrower Group are experienced property investors and developers based in Victoria. The Borrower Group generates substantial income through its real estate holdings, as well as holding substantial net assets.

• The Loan was advanced at a Loan to Value Ratio of 65%.
• 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 multiple joint and several guarantees 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 Guarantors 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 18 months, subject to early or late repayment, from 28 July 2023 to 27 of January 2025.

Investment Details

• Target Return

  9.2% net

• Loan to Value Ratio

  65%

• Term

  9 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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