Project Location

The subject site is within the approved Shenstone Park Precinct Structure Plan, and the land is identified for a mix of business and industrial uses. Development approval has been submitted to subdivide the subject site into 12 industrial plots. Approval for the permit is expected to be granted in the 2^nd quarter of 2023, with construction on site expected to commence in Q3 2023.

Project Development

The purpose of the loan is to refinance the existing mortgage facility on the subject property. The subject property comprises a 10.89 hectare (108,900 sq m) industrial site situated in Donnybrook, 32km north of Melbourne CBD. The site benefits from good access to the Hume Freeway, and is within 700 metres of Donnybrook Train Station.

Vacancy rates for industrial properties are at 1 - 2% which are historical lows across Melbourne, due to demand outpacing new supply. This has led to sharp rises in rental levels in 2021 and 2022 across the different industrial sub markets in Melbourne. The industrial sector has been the best performing commercial property sector over the past 2 - 3 years due to a combination of both prime and secondary industrial yields compressing, and rental rate increases from a shortage of supply.

Project Loan Details

The Borrower intends to repay the loan facility with a new development loan (including construction) once approval for the subdivision has been granted.