The Sponsors have a background in property investment and have other investment properties in nearby Mount Martha and Safety Beach on Victoria's Mornington Peninsula, as well as previously owning properties in Redhill, Moonah Links Resort and Dromana which they have rented out as short-term accommodation.
The purpose of this loan was to purchase a 100-acre block of land in Dromana. The Sponsors planned to onsell the property which the buyer will likely utilise as a vineyard with a single dwelling. They had recently sold another vineyard in Dromana for $4,660,000. The Sponsors injected a considerable amount of their own funds into the purchase and have also conducted soil and water table testing to improve saleability.
The Sponsors couldn’t get bank finance as the property is vacant land and unsuitable security for mainstream banks.
The Sponsor's took advantage of two monthly extensions and paid back the loan two days late at higher interest so the target return of 10.16% p.a. was achieved.
The loan was secured by a First Mortgage
General Security Agreement over Corporate Sponsor + PPSR Charge
Two Personal Guarantees from Individual Sponsors
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