First Mortgage Darlinghurst

Pallas Capital invites eligible investors to participate in this First Mortgage Construction investment opportunity located in Darlinghurst, a bustling inner-city, eastern suburb of Sydney.

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8.25% p.a.
Investor return net of all fees paid quarterly in arrears
May 2022
Redemption date, based on forecasted settlement in June 2021
65% LVR
Of the ‘as if complete’ Gross Realisation Value

Project Details

The purpose of this construction loan is to fund the refurbishment and addition of two levels of an existing 3-storey commercial building. Upon completion, the Security Property will be a 4-star boutique style hotel over four levels comprising 31 rooms with a ground floor and basement level restaurant and pub.

The project is already 100% pre-leased. Agreements for Lease for both the hotel and restaurant / pub components have been executed which provide for a weighted average lease expiry of 10 years.

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01
Purpose
To fund the refurbishment and addition of two levels of an existing 3-storey commercial building. Upon completion, the Security Property will be a 4-star boutique style hotel over four levels comprising 31 rooms with a ground floor and basement level restaurant and pub.
02
Investment
$24 million First Mortgage Construction Loan.

The Loan will be progressively drawn as construction works are completed.
03
Location
Located within the prominent retail and leisure strip of Oxford Street, it is well serviced with boutiques, bars and restaurants. Museum Railway Station is approximately 400m north-west, with a bus services directly outside and opposite providing direct access to CBD and Eastern Suburbs.
04
Security
First ranking Registered Mortgage over the Security Property; first ranking GSA over the Borrower; Sponsor Personal Guarantees; and Tripartite Deed between the Borrower, the Builder and the Lender in relation to the building contract for the construction works.
05
Exit Strategies
As the Sponsor’s strategy is to hold the completed Security Property for long term investment, the primary source of repayment will be refinancing by an investment facility with either a major bank or non-bank lender upon completion of construction works. Given that 100% pre-leasing has been achieved, the Security Property will generate strong net rental returns.
Nearby Amenities
1) IGA
2) Fitness First
3) Museum Station
4) NOMAD Restaurant
5) Sydney Grammar School
6) St. Vincents Hospital

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