Open For Investment
Residential Development, Parramatta NSW
This investment opportunity provides access to a senior secured loan supporting the development of a purpose-built, mixed-use healthcare and retail hub in a rapidly growing regional city in Queensland. The project addresses a clear demand for modern medical facilities and essential services in the area, underpinned by strong population growth and an aging demographic. The loan is secured by a first registered mortgage over the developed land and development, offering robust capital protection.
Investment Details
Target Investor IRR:
11.10%
Loan to Value Ratio (LVR):
TBC
Loan Term:
15 months
Total Loan Size:
$5,800,000
Security:
First Registered Mortgage over the development site.
Location:
Parramatta, NSW
Borrower Profile:
Experienced developer with a successful track record in residential property.
About the Project
The Security Property in Parramatta is located approximately 25 kms west of the Sydney CBD and on the southern fringe of the Parramatta CBD. Parramatta is the second largest city in NSW and is a major regional centre comprising an extensive mix of commercial, retail and residential uses.
The loan is to finance the construction of a three storey walk up residential development accommodating 15 units built over a single level basement car park for 19 vehicles.
The site is strategically located on a major arterial road, offering excellent visibility and accessibility, with ample on-site parking. Construction is shovel-ready, with all necessary planning approvals in place.
About the Borrower
The Borrower is a Special Purpose Vehicle established by an experienced Western Sydney based builder and developer with a sound track record of delivering small to medium sized residential property of a good standard.
Examples of completed projects include;
- Brookvale – 18 residential units built above basement parking and two ground floor commercial suites
- Peakhurst – Construction of four townhouses and two villas
- Merrylands – 44 residential units built above two-level basement parking and four ground floor commercial suites
- Burwood – 48 residential units built above two-level basement parking and two ground floor commercial suites
Security Structure
The loan is a senior secured facility, meaning Vado investors hold priority recourse over the development. Key security features include:
- First Registered Mortgage: Over the entire development site.
- First ranking General Security Agreement over the Borrower
- An unconditional Personal Guarantee from the sole stakeholder
- Multiparty Agreement between the Borrower, the Mortgagor, the Builder and the Lender
- An irrevocable assignment of rental income in respect of the proposed development once completed. The assignments shall be exercisable in event of default of the Loan Facility.
Exit Strategy
The Developer is not intending to strata subdivide and sell the proposed development upon completion and, instead, will look to generate passive rental income by leasing the property to an accredited provider of rental accommodation.
Why Invest in This Deal?
- Strong Market Fundamentals: Located in a high-growth urban area with increasing demand for rental housing.
- Experienced Borrower: Proven track record significantly reduces execution risk.
- Robust Security: First mortgage position and substantial equity contribution from the borrower offer excellent capital protection.
- Diversification: Adds a real-estate loan asset to your portfolio.
- Attractive Returns: A compelling internal rate of return of 11.10% p.a. return.
