Freshwater Mortgage Fund
9-15 Lawrence Street,
Freshwater, NSW
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.
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.
| Fund Status | Project completed and Fund Closed |
| Project | Freshwater Development Site |
| Fund Term | 18-24 months |
| Equity Raised | $6.25m |
| Investment Structure | First 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) |
