Burwood, VIC

Three (3) office buildings with future development potential

The Loan is secured by three (3) office buildings comprising 19,516m² of Net Lettable Area located in Burwood, VIC, approximately 14km east of the Melbourne CBD.

The subject is three (3) separate and fully-fitted commercial office buildings plus an on-site cafe, end of trip facilities, a multi-deck car park and at-grade car parks (totalling 968 car bays).

The Security Property comprises 33,720m² of 'Commercial 1' zoned land under the Whitehorse Planning Scheme. The surrounding locality is generally characterised by residential accommodation by way of medium scale apartments, townhouses, and residential dwellings.

The Sponsor intends to reposition the property and in due course redevelop Buildings 2 & 3 into a purpose-built student accommodation facility that will provide for approximately 350 places (subject to Council approval).

The Borrower Group is a Joint Venture between an asset and fund management company and an international investor that holds very significant real estate assets in Australia. The Borrower Group is well known to the Manager who has provided a number of 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 9.15% p.a., net of fees and expenses, and is paid to Investors monthly in arrears.
• The Loan is supported by first registered mortgage, multiple joint and several personal and corporate guarantees and a General Security Agreement over the Borrower.
• Interest net of rental income and calculated as sufficient 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 a loan of this nature.
• The Loan Term is 18 months, subject to early or late repayment, from 20 December 2023 to 19 June 2025.

Investment Details

• Target Return

  9.15% net

• Loan to Value Ratio

  62%

• Term

  13 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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