Beach Road

Location

The property is located in Port Melbourne, which is approximately 6.5km southwest of the Melbourne Central Business District and is within the local government area administered by the City of Port Phillip Council. The immediate surrounding developments are mostly residential in nature, characterized by single residential dwellings, medium-density townhouse development, and interspersed with amenities and services complementing strategic redevelopment.

‍Development Project

The project involves the construction of a 5-storey residential apartment building comprising 20 strata units and a ground floor retail unit over a single-level basement car park. The property occupies a site area of 1,361sqm and is situated directly opposite Station Pier on the foreshore of Port Phillip Bay, which is Victoria's premier cruise shipping destination.

The borrower acquired the property with an approved planning permit for 12 residential units with a total NSA of 2,715sqm and ground floor retail area. Subsequently, the borrower has also obtained a DA approval that allows for the development of 22 apartments with a total NSA of 3,195sqm, retail space of 728sqm, and basement car parking of 39 at-grade car spaces.‍

Purpose

The loan is provided to assist with the refinancing of the land and fund the construction costs pursuant to the project.‍

Exit Strategy

The exit strategies will be via the sale of individual apartments and/or refinance with a Residual Stock Facility.‍

Construction Progress

As of September 2023, the construction is progressing at 26.8% completion against cost.‍

Pre-sales‍

The sponsor has already achieved four pre-sales for a net sale value of approximately $22.2 million net of GST, which provides a debt coverage of 44% over this loan.