The Sponsors have a background in operating their own building company for the past 20 years. One is a Housing Industry Association (HIA) area representative and has also been involved in real estate sales, building surveying and consulting services.
The purpose of this loan is to refinance two existing loans and to complete the land subdivision of a development site in Legana, Tasmania. The land has a DA for subdivision of 42 lots – 38 residential lots, 2 utility lots and 2 road lots.
The Sponsors can’t get bank finance as they do not meet serviceability requirements of traditional finance providers.
Security on offer is the investment development site in Legana, a peaceful town located in the outer suburb of Launceston, Tasmania. Additional securities are the sponsor’s principal place of residence located in Youngtown as well as their holiday home in Ansons Bay.
The exit strategy is to sell the subdivided lots and repay debt.
- The loan will be secured by three First Mortgages
- Personal Guarantees from two Individual Sponsors
- General Security Agreement over Corporate Sponsor + PPSR Charge