Oct 08 2018Add to Favorites
Balmain Private have provided a residual stock loan to refinance five recently completed residential apartments located at 25 Trent Street, Glen Iris in Victoria.
According to Balmain Private’s head of distribution, Tom Sherston, the $2.2 million loan was syndicated between seven investors via the Balmain Private digital investment platform and oversubscribed within 45 minutes. The investment term is 12 months and forecast return 8.65% net with distributions paid monthly to investors.
“Since Balmain settled the Loan, the Borrower has completed the sale of two of the security apartments, which reduced the (Loan to Value) LVR from 70% to 65%.”
“Balmain decided to hold the investment internally until these two apartments settled to remove unnecessary short-term capital repayment issues for investors investing via the Balmain Private platform”.
The Trentwood complex is situated within Glen Iris, an established residential area 10kms south-east of Melbourne’s CBD and within close proximity to schools, shops, parks, arterial roads adjacent to Burwood train station.
The Borrower is an entity established specifically for the development of ‘Trentwood’, and is part of a large, privately owned development group based in Melbourne. They currently have a pipeline of $1.2b in projects and on average are developing 650 dwellings per year.
“Investors can register on line via the Balmain Private website and once an investment account has been opened, can invest in high quality, lowly geared, syndicated loans, starting in increments of $10,000.”
“Since 2012 Balmain Private has delivered an average of 7.9% net across 150 stand-alone Sub-Trusts totaling an aggregate loan amount of over $500,000,000”.
Home loan approvals have fallen significantly off the back of the APRA and the Royal Commission initiatives together with new Responsible Lending Criteria. The ABS recently reported that home loan approvals have fallen by 13.6% year on year and within that, investment loans have come back by c.20%
Off the back of successfully settling a $48m syndicated first mortgage for a residential apartment development in Sans Souci just weeks ago, Sydney-based real estate investment manager Centennial Property Group (CPG) opened a new fund with a focus on the industrial and logistics market, Centennial Industrial and Logistics Fund II (CIL II). The fund, available only to wholesale and private high net worth investors, opened on 1 November and was seeking to raise c. $38 million. CPG closed the fund less than two weeks later, well before the official close date, due to oversubscription.
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