Armstrong

Location

The subject property is located approximately 8km north of the Geelong CBD and is one of 60 suburbs within the City of Greater Geelong. The subject property and surrounding land are within an Urban Growth Zone. Armstrong Creek is a growing suburb with shopping amenities located within the Village Warralily Shopping Centre (4km east) or Waurn Ponds Shopping Centre (5km north) and educational facilities ranging from primary to tertiary within a 7km radius.

Development Project

The project consists of a staged residential land subdivision development. Stage 1 of the project comprises the civil works pertaining to the formation of 35 high density residential lots ranging between 250-400 sqm (average 256 sqm) plus a Super lot of 1.326 hectares that will cater for 8 townhouse lots (average 165 sqm). Stage 2 of the project comprises the civil works pertaining to the formation of 20 high density residential lots ranging between 250-350 sqm (average 285 sqm) plus 3 Super lots over 4.3 hectares that are to be developed into 24 townhouse lots (average 179 sqm).

In total the Stage 1 & 2 development will consist of 55 high density residential lots and 32 townhouse lots over 4.393 hectares. Stage 3 is to commence development post the completion of Stages 1 & 2, it will comprise 42 lots over the 1.744 hectare site area. The stage 4 Superlot is flagged for mixed use development with half of the land presold to a childcare operator for $2.5m.

Pre-sales

45 out of 87 lots of Stage 1 & 2 lots have been pre-sold as at the 23rd May 2023 yielding a gross sales amount of $15.449m. The majority of these are held with 5% deposits which is deemed to be standard for land subdivision purchases. Half of the stage 4 Superlot has been pre-sold to a childcare operator for $2.5m.

Purpose

The purpose of the loan is to assist with the purchase and development of vacant land.

Facility repayment

The repayment strategy for the facility will be from the pre-sale upon completion of the project.