The Borrower requested finance to purchase a development site in Mirrabooka, WA and fund the soft costs associated with obtaining DA and presales for its development. The facility was secured by the development site and two quality residential properties, one in Attadale and the other in Applecross, at a 70% loan to value ratio. The development site is located centrally within the Mirrabooka Town Centre, 11kms north-east of the Perth CBD, within the local government area of the City of Stirling. The Borrower will seek approval from the local council to develop the site into a three-level apartment complex consisting of 41 apartments and 2 commercial units.

The apartment design is subject to council approval and is expected to consist of 28 x 2 bedroom, 5 x 1 bedroom and 8 x studio apartments, with an average selling price of $388k. The large commercial units are estimated at an average selling price of $1.8m each. The construction is expected to cost $12.0m excluding financing costs, with an estimated gross realisation value of $19.1m (ex GST).