Loan Spotlight: Applecross to Tweed Heads
Canning Beach Road, Applecross WA
Loan Advance $6.6M
Loan to Valuation Ratio 57.85%
The larger security property with land area of 1,462sqm was improved with a circa 1974 two level five bedroom dwelling which was dated and provided limited additional value. This property was proposed for development of a 9 storey luxury apartment dwelling comprising of 23 units.
The adjoining security property had land area of 400sqm and comprised a circa 2005 built two level four bedroom dwelling. This was purchased strategically to avoid any objections or delays to the development of the primary site. It guaranteed views, removed the ability for neighbour to competitively develop and provided longer term development options for the experienced borrower.
The two properties are located approximately 7km south of Perth CBD within the precincts of Applecross and the riverside suburb of Mt Pleasant, both highly desirable suburbs with good sized river frontage and CBD views. They fall within the Canning Bridge Centre Plan adopted and approved by the Western Australian Planning Commission which provides for higher density development and is within the Q1-Kintail Quarter with a ‘Mixed Use’ classification allowing 10 storey commercial/residential development potential.
The borrower had previously developed a series of high density elite residential projects and was marketing a built development of similar dimensions at the time it took out the loan from Angas Prime. Other adjoining properties were subsequently acquired. The Angas Prime loan was discharged by an incoming financier which provided a construction facility for the consolidated site.
Balliang near Bacchus Marsh VIC
Loan Advance $1.1M
Loan to Valuation Ratio 55%
This loan was advanced against a rural holding owned by the borrower to enable a business opportunity to be realised. The borrower owned a well established electrical communications and generation provider which required funds to complete purchase of an engineering contracting services company which held significant government and private sector contracts. The acquired business provided backup power generation for hospitals, universities, local government and Defence. Cash forecasts projected positive cashflow from the date of acquisition as proved to be the case.
The borrower’s bank was unable to assist within the contractual time constraints so Angas Prime stepped in taking a charge over the borrower’s trading assets. Prime security was a first mortgage taken over adjacent properties zoned farming land circa 76ha each within the rural area of Balliang situated approximately 20km south of the Bacchus Marsh township, 39km north of Geelong and approximately 71km west of Melbourne CBD. Improvements comprised a weatherboard dwelling and some basic farm sheds.
Loan discharge came from retained profits generated by the borrower from the newly acquired engineering contract services business as per the loan application.
Fraser Drive, Tweed Heads NSW
Loan Advance $650k
Loan to Valuation Ratio 65%
The security property is located in the established residential area of Tweed Heads which straddles the Queensland border and the Gold Coast metropolis.
It comprised an irregular shaped, vacant, englobo parcel of land area of 9,816 sqm. Partial earthworks had been undertaken and largely cleared of vegetation, however, further earthworks were required to facilitate development. A shared access easement road linked property through to Lorikeet Drive in the North East. Access to the property will also be via a new road to be constructed linking to Hillcrest Avenue in the South West of the property. Zoning was R1 – General Residential Zone.
Loan funding was required as bridging finance whilst the borrower sought a construction facility for land subdivision. Two other sites were acquired by the borrower with a view to the three sites being amalgamated and subdivided into six allotments. Civil works were required from the incoming construction financier to enable access roads and services to be established for this purpose.
Loan discharge came from re-finance of Angas Prime’s bridging loan into the new facility.