Fully Invested

Belconnen & Phillip, ACT

21 Commercial Units and 17 Residential Units - Residual Stock Loan

The Loan is secured by first registered mortgages over 21 commercial and 14 residential units located in Belconnen, ACT, approximately 10km north west of the Canberra CBD. The Loan is also secured by an additional three (3) residential units in Phillip, ACT 2606, approximately 10km south of the Canberra CBD.

This Loan is a Residual Stock Facility and it is anticipated that the Loan and the LVR will reduce during the Loan Term from sales of the Security Properties. On completion of the sale of a Security Property, the Loan facility will be reduced by the agreed net sale proceeds and these funds will be returned to Investors.

The 21 commercial strata commercial units and 14 residential apartments are located within the Republic Precinct development. The precinct comprises four (4) developments which comprise 1,200 residential apartments, 51 commercial units, and a hotel.

The three (3) additional Security residential units are located in the Grand Central Towers. That development comprises two (2) towers containing 430 residential apartments, 12 commercial units, and circa 500 car parking lots.

The Borrowing Group is an experienced property developer and investor who is one of the largest residential developers and hotel operators in Canberra. They generate substantial income through a diverse portfolio of property and other investments.

The Manager has assessed the financial position of the Borrower and Guarantors and is satisfied that they are collectively financially capable of supporting a loan of this nature. 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 62%.
  • The Target Return is 9.95% 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 related corporate entities.
  • The Manager has assessed the financial position of the Borrower and Guarantors, 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 29 November 2023 to 28 May 2025.

Investment Details

  • Target Return
    9.95% net
  • Loan to Value Ratio
    62%
  • Term
    11 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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