Fully Invested

Essendon, VIC

Commercial property Permit Approved for commercial/residential redevelopment

The Loan is secured by first registered mortgage over a commercial property located in the Melbourne suburb of Essendon, VIC approximately 10km north west of the Melbourne CBD.

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

The Security Property comprises a 5,316m², 'Commercial 1' (C1Z) zoned site with an approved Planning Permit for the construction of 121 residential apartments and ground floor commercial.

The property is currently improved with various showrooms and workshop buildings associated with the previous use of the site as a fully integrated car dealership and service centre. The property is occupied by multiple tenants on short term leases and produces holding income that offsets operating costs.

The Borrower Group are existing clients of the Manager, and are experienced property developers who have completed several residential and commercial developments across Melbourne. They have substantial real estate 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.
  • 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 a loan of this nature.
  • The Loan Term is 12 months, subject to early or late repayment, from 8 September 2023 to 7 September 2024.

Investment Details

  • Target Return
    8.95% net
  • Loan to Value Ratio
    65%
  • 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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