The Borrowers have a background in property investment and have other investment properties in nearby Mount Martha and Safety Beach on Victoria’s Mornington Peninsula, as well as previously owning properties in Redhill, Moonah Links Resort and Dromana which they have rented out as short-term accommodation.
The purpose of this loan is to purchase a 100-acre block of land in Dromana. The Borrowers plan to onsell the property which interested parties will likely utilise as a vineyard with a single dwelling. They have recently sold another vineyard in Dromana for $4,660,000 to Asian buyers. The Borrowers have injected a considerable amount of their own funds into the purchase and have also conducted soil and water table testing to improve saleability.
The Sponsors can’t get bank finance as the property is vacant land and unsuitable security for mainstream banks.
The Sponsor’s exit strategy is to promptly sell the property, most likely to an offshore purchaser.
Private Mortgages Australia was able to loan $1,950,000 with an LVR of 65% at a 14.50% interest rate. The loan had capitalised interest for six months plus two monthly extensions.