Oct 08 2018Add to Favorites
Investors via Balmain Private’s digital platform have rushed to a recently offered Trinity Point Drive investment, with the investment fully subscribed within 4 hours of being listed on the platform.
The investment forecasts a 9.15% annual return for a term of 18 months with a Loan to Value ratio (LVR) of 43%, with distributions paid monthly.
The $700 billion in Australian Self-Managed Superannuation Funds (SMSF) is increasingly limited for choice when it comes to property and real estate investment exposure. Major banks such as Westpac and Commonwealth Bank have recently announced lending restrictions to SMSF’s for property in the wake of the ongoing APRA lending restrictions and Royal Commission.
“124 investors took up the $6million syndicated offering at Trinity Point Drive at a minimum investment of $10,000’. Says Balmain’s Head of Distribution Tom Sherston. “We find this entry amount offers investors via the Balmain Private Platform opportunity to enjoy good diversification.”
“Once investors have opened an account on line via the on-line Balmain Private platform they are free to choose the range of high-quality investments on the platform, with frequent new investment deals loaded to the platform”.
The Trinity Point estate is a 190 lot residential subdivision encompassing 23 hectares located on Bluff Point in Morisset. Once fully complete, the master plan estate will comprise of a 188 berth marina (completed), 250 residential apartments, a 200 seat restaurant and bar, café and a 65 room 5 star hotel.
The estate has been developed over 10 stages, with Stages 1 - 4 completed and sold pre-GFC and Stages 5 - 10 progressively completed over the last 18 months.
The Borrower Group is one of the largest private residential land developers in NSW controlling 2,500 lots with government approval in varying stage of completion.
“We are confident in the long-term residential outlook in Australia based on growth and migration levels”.
The current investment landscape in Australia is driven by a range of factors, not least the 2019 federal election, and the view is that the result of the Wentworth by-election, a seat that has historically been monopolised by the Liberal Party, will be the foreshadowing of the federal outcome. The Australian equities market is experiencing volatility, with a 200 point drop last week in the S&P ASX index, the largest drop this year and potentially the result of sentiment surrounding geopolitical headwinds with the latest developments relating to the trade war between the USA and China. Global bond rates remain low, and despite incremental increases, interest rates are too low to be attractive from an investment perspective.
In an ongoing low-interest rate environment on savings and with banks withdrawing from property and construction financing, investment groups like Centennial Property Group are seeing value in providing first mortgage funding for property development, recently settling a $48m loan for a mixed-use retail/residential development in Sans Souci, NSW
With the combined influences of a cooling residential property market and heightened bank scrutiny on all aspects of real estate lending, traditional debt sources are, in many cases, closed to developers and commercial real estate investors, particularly where circumstances require a specific funding solution.
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