Freshwater Mortgage Fund

9-15 Lawrence Street,
Freshwater, NSW

Property Description

The Freshwater Mortgage Fund was established to provide Investors with the opportunity to participate in a $6.25 million first mortgage loan to IPM (a Sydney based property developer) in support of the acquisition of a 2,596sqm development site located at 9-15 Lawrence Street, Freshwater, NSW. The loan LVR was 60% with a maximum period of 24 months, and attracted an interest rate of 10.0% per annum.

Investment Rationale

The Fund provided Investors with an opportunity to provide capital to an experienced Sydney based developer with a strong track-record in delivering high-end residential projects in Sydney. The project comprised the development of 26 apartments with upper-floor views over Freshwater beach, together with 2 ground floor retail units. The loan was provided for the land-banking phase, during which the developer obtained Development Approval and pre-sales. The land-bank facility was replaced by the developer with traditional construction finance once sufficient pre-sales had been achieved.

Key Fund Stats

Fund StatusProject completed and Fund Closed
ProjectFreshwater Development Site
Fund Term18-24 months
Equity Raised$6.25m
Investment StructureFirst Mortgage Loan
Investor Return on Equity 16.5% (13.8% Forecast)
Investor Internal Rate of Return 9.2% p.a. (9.0% p.a. Forecast)