The Sponsors are dairy farmers in Currajong South in Eastern Victoria.
The purpose of this loan is to refinance a commercial debt from another private lender. The Sponsor plans to retire and requires the capital back from their SMSF loan as they now need access to these funds.
They can’t obtain bank finance as their financials do not meet traditional banks’ servicing requirements.
Security on offer is 107 acres of land with a residential property. The land is primarily used as a dairy farm and for cattle grazing. The residential property has three bedrooms and one bathroom.
The exit strategy is to to subdivide the land in to five acres with the house and 102 acres as the farm. The Sponsor will then sell the house on five acres of land, repay the debt and retain the remaining land as a dairy farm.