INFORMATION MEMORANDUM 100 Dorsal Drive
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INFORMATION MEMORANDUM 100 Dorsal Drive Information Memorandum Dated 26 March 2019 Holden Capital Partners ABN 696083461 AFSL 481944 www.holdencapitalpartners.com.au INFORMATION MEMORANDUM 1 EXECUTIVE SUMMARY BORROWER AEC Projects Dorsal Drive Pty Ltd (ACN 617 398 839) (“The Borrower”). GUARANTORS Personal Guarantee for Debt, Interest and associated costs from Mr. Michael Choi. Corporate Guarantees from Micdor Consultants Pty Ltd (A.C.N 010838687) ATF Sheridan Investment Trust, and Pan Pacific (Australia) Pty Ltd A.C.N 056317278. LOCATION The project is located in the prestigious Aquatic Paradise canal estate at Birkdale. Birkdale is located 25km south-east of Brisbane's CBD. PROPERTY 100 Dorsal Drive, Birkdale Qld, 4159 further described as Lot 3 on Registered Plan No. 184228; Title Reference 16358097 and 232-234 Birkdale Road Birkdale, QLD, 4159 which are to be developed into 18 terrace homes. LOAN PURPOSE To complete construction of “100 Dorsal Drive”, comprising eighteen (18) terrace homes split between two-level, three-level and four-level terrace homes. LOAN TYPE Fully Committed progressively drawn 1st Mortgage Construction Facility. The facility will be drawn down on a progressive basis. Please refer to the ‘Debt Cashflow’ on page 13. LOAN TERM 11 months from the date of the First Advance. LOAN AMOUNT $6,800,000 exclusive of capitalised fees and interest. VALUATION A valuation report, dated 23 January 2019, addressed to Holden Capital Partners has confirmed the Market Value “As If Complete” for the Project at $17,807,888 inclusive of GST. KEY RATIOS Loan to Value Ratio (Excl GST) – equal or less than 47.1% including capitalised fees and interest. Loan to Cost Ratio (Excl GST) - equal or less than 58.9% including capitalised fees and interest. PROJECTED INVESTOR 9.28% per annum IRR (net of fees). RETURN MINIMUM INVESTMENT PER $100,000 INVESTOR MAXIMUM INVESTMENT PER $2,000,000 INVESTOR OPEN FOR INVESTMENT 26 March 2019 CLOSED FOR INVESTMENT The earlier of; Tuesday 9 April 2019 or full subscription. TARGET SETTLEMENT DATE Wednesday, 10 April 2019. SELECTION FORM AND Prior to 5pm on Tuesday, 9 April 2019. FUNDS TRANSFER INFORMATION MEMORANDUM 2 TABLE OF CONTENTS 1. KEY INFORMATION ............................................................................ 4 2. THE PROJECT .................................................................................... 5 3. THE BORROWER............................................................................... 13 4. PROPOSED TERMS & CONDITIONS ........................................................ 15 5. FUNDING AND CASHFLOW TABLES ....................................................... 16 6. RISKS AND MITIGANTS ...................................................................... 17 7. ABOUT HOLDEN CAPITAL PARTNERS ...................................................... 18 8. OPERATIVE ..................................................................................... 19 9. HOW TO INVEST .............................................................................. 21 10. S ELECTION FORM............................................................................. 2 2 This Information Memorandum dated 26 March 2019 is issued by Holden Capital Partners Pty Ltd (Holden Capital Partners). Important: This investment product is issued by Holden Capital This information does not take into account the financial objectives, Partners Pty Ltd ABN 69608346158, AFS License Number 481944. situation or needs of any particular investor. Interest rates, loan to value The information contained within this document has been based ratios and investment terms are subject to a number of assumptions and primarily upon information provided by the client and/or the clients risks. Interest and interest rates quoted are not guaranteed. consultants. As such HoldenCAPITAL disclaims any responsibility for ^Any quoted rates are net of management fees and costs. Please note the accuracy of information contained herein. All property projects that past performance is not a reliable indicator of future performance. contain risks and potential investors are advised to make their own *If the final loan amount is less than this figure, funds will be returned to investigations into the information presented prior to considering any investors on a 'last in, first out', basis. investment. INFORMATION MEMORANDUM 3 1. KEY INFORMATION THE PARTIES PURPOSE OF THE LOAN SYNDICATE MEMBER “Investor” To complete construction of “100 Dorsal Drive”, comprising As per details provided by you in the accompanying Selection eighteen (18) terrace homes split between two-level, three- Form level and four-level terrace homes. You have explained to us that you are not seeking advice BACKGROUND from us on your decision to participate in this Loan, we have The Developer purchased the land and has funded offered you to opportunity to participate and you have made construction of ~50% of the construction works to-date, from your own enquiries and wish to proceed. his own cash resources. The Borrower approached HoldenCAPITAL seeking funding for the remaining works and MORTGAGE MANAGER to recoup some capital to enable them to progress their next Holden Capital Partners Pty Ltd A.C.N 154 792 953, GPO project. Box 7008, Brisbane Qld 4001 (“THE MORTGAGE MANAGER”) As a result, this facility will provide them with ~$800k in recouped capital and meet the certified cost to complete of THE TERMS $4.7m at a projected Max LVR of 50% 1. The Mortgage Manager has arranged a Property Finance Facility (the Loan) with the Borrower as detailed in this There are currently two executed presale contracts totalling 2. Information Memorandum. $2.43M (~30% debt cover), two contracts issued, and the 3. The Syndicate Members are participants in the Loan as developer proposes to retain the 2 two storey terrace homes Lenders. as investments with the balance to be sold. 4. The Mortgage Manager will manage the Loan as the nominated Lender on behalf of the Syndicate Members. VALUATION OF THE SECURITY PROPERTY 5. The Syndicate Members and the Mortgage Manager A valuation report by Hymans Valuers & Auctioneers dated 23 agree to syndicate the Loan in accordance with the terms January 2019 addressed to HoldenCAPITAL Partners has and conditions of this Deed. confirmed the ‘as if complete’ value including GST as $17,807,888. THE BORROWING ENTITY AEC Projects Dorsal Drive Pty Ltd (ACN 617 398 839) LOAN AMOUNT $6,800,000 plus capitalised interest. THE GUARANTORS Personal Guarantee for Debt, Interest and associated costs DRAWDOWNS from Mr. Michael Choi. The facility will be drawn down on a progressive basis. Please refer to the ‘Debt Cashflow’ on page 13. Corporate Guarantees from Micdor Consultants Pty Ltd (A.C.N 010838687) ATF Sheridan Investment Trust and Pan KEY RATIOS Pacific (Australia) Pty Ltd A.C.N 056317278 Loan to Value Ratio (Excl GST) – equal or less than 47.1% including capitalised fees and interest. SECURITY PROPERTY DETAILS & DESCRIPTION Loan to Cost Ration (Excl GST) - equal or less than 58.9% 100 Dorsal Drive, Birkdale Qld, 4159 and232-234 Birkdale including capitalised fees and interest. Road Birkdale, QLD, 4159 described as L3 RP184228. LOCATION The project is located in the prestigious Aquatic Paradise canal estate of Birkdale. Birkdale is located 25km south-east of Brisbane's CBD. EXIT STRATEGY The proposed exit of the requested facility is by way of either; - the sale of residential lots in the completed project during the loan terms, or - refinance via a residual stock loan funded by HCP or another lender. LOAN APPROVAL STATUS HCP has formally approved the loan facility, which is now open for subscription from investors. INFORMATION MEMORANDUM 4 2. THE PROJECT 2.1 LOCATION The project is located in the prestigious Aquatic Paradise canal estate of Birkdale. Birkdale is located 25km south-east of Brisbane's CBD in the Redland City Region. The site comprises a regular shaped allotment that is situated at road height with predominantly flat topography. The site has dual street frontage, positioned to the north of Birkdale Road and South of Dorsal Drive. The site has a total land area of 3,153m2. INFORMATION MEMORANDUM 5 2.2 PROJECT OVERVIEW The proposed complex will comprise the construction of eighteen (18) terrace homes split between two-level, three-level and four-level configurations (Types A, B, C and D). The homes will each consist of three-bedroom accommodation with associated living areas, three-bathrooms (3) to all but two, rumpus area, powder rooms, laundry and attached garages. Sixteen (16) will have internal lifts. Individual areas will range from approximately 244m2 to 316m2 inclusive of external living and terrace areas. They will also include external courtyards. Communal space will include visitor’s car parks, car wash bay and communal bin store. 2.3 CONSTRUCTION CONTRACT The building works are subject to a contract between the following related parties: - AEC Projects Dorsal Drive Pty Ltd (ACN 617 398 839) (Owner) - AEC Australia Pty Ltd (ABN 30 089 151 762) (Contractor) The contract utilised in a construct only Master Builders Commercial Building Contract (LSC2 September 2014) which is acceptable for a project of this nature. It is a standard unamended Contract that that has been executed by both parties on the 11 June 2018. 2.4 QUANTITY SURVEYOR GRC is an independent construction cost consultancy operating across Australasia. GRC are specialist quantity surveyors helping developers successfully develop, build and maintain natural and built