Adelaide, SA

CBD high rise residential development site

 The Loan is secured by a first registered mortgage over a 1,700m² CBD high rise residential development site located in Franklin Street, Adelaide, SA, approximately 600m west of the Adelaide GPO.

The purpose of the Loan was to provide funds to the Borrower to complete another group project. The Security Property is surrounded by a mix of low level commercial / retail buildings and residential developments.  The property is within close proximity to the popular Central Market precinct which provides an array of amenities and services with a strong focus on food, retail and restaurants, further enhanced by the Chinatown and Gouger Street restaurant precincts. It is also close to tertiary institutions including University of South Australia to the north and TAFE SA to the north east.

The subject property forms part of the ‘Balfours Site’, which is a significant Adelaide CBD redevelopment site bordered by Morphett Street, Waymouth Street, Elizabeth Street and Franklin Street.  The Borrower Group has already successfully completed 252 apartments on the Balfours Site.

The site is zoned ‘Capital City’ within the City of Adelaide. A planning approval allowed for the construction of a 16 storey mixed use building comprising residential apartments, ground floor commercial tenancies and two (2) levels of basement car parking, however this has expired. The Borrower has submitted requests for variations to the planning approval, seeking a Change of Use from residential, to short term tourist accommodation for levels 1-3.

Interest for the Term of the Loan has been lodged on deposit with the Manager.

The Borrower is a SPV formed to acquire the Security property. The Director and shareholders have substantial experience in property development and investment, having developed multiple properties across Australia in the last 20 years.

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 60%.
• The Target Return is 8.95% p.a., net of fees and expenses, and is paid to Investors monthly in arrears.
• The Loan is secured by first registered mortgage, personal guarantee and a General Security Agreement over the Borrower.
• Interest for the Term of the Loan has been lodged on deposit with the Manager.
• The Loan Term is 12 months, subject to early or late repayment, from 16 January 2024 to 15 January 2025.

Investment Details

• Target Return

  8.95% net

• Loan to Value Ratio

  60%

• Term

  8 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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