An experienced Borrower has development approval to construct a two level, six-unit residential apartment complex in Currambine, WA.

The apartments will be two bedrooms, two bathrooms and are expected to sell on average for $385k each. The apartments are ideally located only 450m from the Currambine train station.

The construction loan, with multiple funding draws, will be secured by a registered first mortgage over the development site in Currambine, at a 67% loan to value ratio on an “as if complete” basis.

The loan is expected to be repaid by the sale of the newly titled apartments. To date, there are two pre-sales (valued at $790k) and three expressions of interest for the units. Once the pre-sold units have settled it is expected the residual LVR against the remaining debt will reduce to 52%.

Settlement of the apartment sales may be staggered and if this was to occur, funds will be returned to Investors on a pro rata basis.

Construction of the apartment complex is 80% complete as per the quantity surveyor report dated 04/05/2018.

All draws have been funded to date. We expect the next draw to be available for funding in June 2018.