Sunbury, VIC

Retail Development Site – Major Town Centre

The Loan is secured by first registered mortgage over a significant retail development site known as the Redstone Major Town Centre,  located in Sunbury, VIC, approximately 38km north west of the Melbourne CBD.

The site comprises a 10.33ha 'Urban Growth Zone – Schedule 9' zoned allotment, situated within the Endorsed Sunbury South Urban Design Framework Plan (UDFP). It forms part of a larger parent land holding owned by the Borrowers, which is known as the Redstone Hill Estate.

Under the UDFP, the site is identified as a Major Town Centre with a maximum floor space of 25,000m² for retail and 10,000m² for commercial buildings. At the time of making the Loan, the Borrower was preparing a planning permit application for the development of the Major Town Centre and held pre-commitments from Kmart, Coles, McDonalds and BP.

The site occupies a gateway position to the parent Redstone Hill Estate at a controlled intersection and is located approximately 5km south east of Sunbury Town Centre.

Upon completion, Redstone Hill Estate is anticipated to accommodate 1,886 residences. The first nine (9) stages were completed, with 329 residential lots either sold or under contract of sale.

The purpose of the Loan was to provide funds to the Borrower for investment in development of the Redstone Hill Estate, including pre-development works for the Major Town Centre site.

The Security Property is owned by a Special Purpose Vehicle (SPV) established specifically for the acquisition and development of the Master Planned project. The Borrower Group which controls the SPV is a substantial Melbourne based developer that has 30 years’ experience in the development of residential subdivisions in most of Australia’s major population centres. The Borrower Group is well known to the Manager.

• The Loan was advanced at a Loan to Value Ratio of 58%.
• The Target Return is 9.15% p.a., net of fees and expenses, and is paid to Investors monthly in arrears.
• The Loan is supported by joint and several corporate guarantees and a General Security Agreement over the Borrower.
• The Borrower is to make monthly interest payments in advance. 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 18 months, subject to early or late repayment, from 30 October 2023 to 29 April 2025.

Investment Details

• Target Return

  9.15% net

• Loan to Value Ratio

  58%

• Term

  12 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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