Loan Spotlight: Rundle Street and more

16 Oct, 2021

Rundle Street, Kent Town SA

Loan Advance $5.74M
Loan to Valuation Ratio 70%

The security property is located within the mixed use suburb of Kent Town which adjoins the Adelaide CBD. At the time of the loan advance, the property was improved with a heritage listed cottage converted for use as a café, a near derelict single fronted cottage, a single level detached showroom/workshop and a large office warehouse split into 3 tenancies. The borrower proposed a boundary realignment of the property into 10 separate lots as follows:

  • Lots 1 & 2 & 3 – 6 townhouse sites on each lot
  • Lot 4 – proposed apartment lot (4/5 levels)
  • Lot 5 – 3 townhouse sites
  • Lot 6 – Comprise existing derelict cottage
  • Lot 7 – Comprise existing café
  • Lots 8 & 9 – 4 & 3 bay car park respectively
  • Lot 10 – Comprise roadway providing vehicular access to Lots 3-6.

The borrower is a high net worth and experienced property developer and one-time equipment financier who has long standing connections to Angas Prime. The development proceeded as proposed and the loan was discharged by sale of the newly created lots.

Richmond Road, Marsden Park NSW

Loan Advance $5.25M
Loan to Valuation Ratio 43.34%

The security property was a greenfield development site of 2,185ha located within the north-western Sydney suburb of Marsden Park. The site zoned R3 ‘Medium Density Residential’ and SP2 ‘Infrastructure’. Improvements comprised a residential dwelling, garage, sheet metal sheds and farm buildings – considered of nominal value that were demolished when DA approval was finalised.

The subject property had potential lot yield of 77 lots.

The property taken as security formed part of larger consolidation of 13 allotments. Subdivision of this superlot was proposed into lots forming 17 residential zoned lots and 2 residue lots that would accommodate 5,660 dwellings. The site was situated in close proximity to housing estates already under construction (The Grange Estate, Elara), Marsden Park industrial estate, Schofields Railway Station and various schools.

The borrower is a major Sydney property developer and builder which commenced operation in 1997 and has been a regular client of Angas Prime for the last ten years. The borrower has built and sold over 8,000 dwellings to date and brings a strong balance sheet to all of its dealings with Angas Prime.

Loan discharge came from re-finance upon consolidation with other land parcels into the super lot development site.

Federation Way, Corowa NSW

Loan Advance $3.42M
Loan to Valuation Ratio 50%

The security property had a site area of 1.055ha and was zoned B6 – ‘Enterprise Corridor’ with Development Consent from Federation Council for the development of a service station. It was located 4km north of Corowa town centre with good visibility and wide frontage from both the north and south bound traffic and eastern approaching traffic from Federation Way. Corowa is located on the banks of the Murray River approx. 60km west of Albury/Wodonga and is a popular tourist destination.

The property was being developed as a Mobil branded ‘Highway Service Centre’ including a retail fuel outlet and convenience store with attached café and diner with a truck driver lounge and amenities. The service station had an on completion lease for fifteen years.

The borrower was an experienced commercial developer and had completed similar developments in Albury/Wodonga and surrounds. This included a wide range of commercial, industrial, hospitality and education facility construction projects, including a storage facility at Port Kembla, Mitta Community Centre and a warehouse for Bullivants (a division of Wesfarmers).

The loan was repaid from the sale of the service station upon completion. Angas Prime subsequently declined a loan application from the same borrower for a similar project as the site was considered to be inferior.

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