CPF Property Debt Fund

Eunoia Second Mortgage

About Eunoia – Second Mortgage

Security for this loan is provided via a registered second mortgage over land located at:

  • 244 Camp Flat Rd, Bli Bli QLD 4160, referred to as ‘Hillside Retreat’ and is located approximately 11 kilometres north west of Maroochydore Business District (Sunshine Coast).
  • 118 Elof Rd, Caboolture QLD 4510, referred to as ‘Sanctuary’ is located approximately 50kms north of Brisbane’s CBD.

The purpose of the loan is to:

  • Refinance an existing land loan and to provide funding for the construction of 15 residential land allotments located at 244 Camp Flat Road, Bli Bli QLD 4560.
  • Fund the acquisition of the development site and provide funding for the construction of 21 residential land allotments located at 118 Elof Road, Caboolture QLD 4510.

Henry Ledingham the Sponsor behind the two projects, has completed several land subdivisions. Henry has extensive experience in construction/ project management.

The Capital Property Funds lending team has had previous dealings with Henry and regard him as a competent developer.

INVESTMENT DETAILS

Return: 10.50% pa – paid quarterly
LVR: 60.00%
Term: 15 months, expected repayment December 2024

First Mortgage Security

Why Invest?

Over the medium to long-term the Southeast QLD residential market is forecast to benefit from robust population growth, a sizeable dwelling stock shortage and the 2032 Olympics and associated development infrastructure.

Residential rents are expected to increase strongly over the short-term, with vacancy below the equilibrium level in all sub-markets.

As at the date of this Document there is a shortage of housing stock in South East Queensland.

The Loan will finance 2 ‘shovel ready’ residential land lot projects.

The Borrower is regarded by the Lending team as competent and experienced in this type of development.

The loan is secured via a first registered mortgage over the Subject Property.

Additional Security is also provided via a first registered General Security Agreement over the Borrower, Corporate Guarantee, a Personal Guarantee, a licence to use the intellectual property (i.e. drawings and plans) and a tripartite agreement with civil contractor.

The loan provides geographic and market segment diversification.

Land subdivision projects are generally considered lower risk when compared to built form development projects.

Loan Summary

 

LOAN SUMMARY – Eunoia Second Mortgage

Loan Facility

$10,314,000


Fund Status

Open for Investment


Loan Term

10 months – Expected Repayment December 2024


Investor Distribution Yield

10.50% p.a. – paid quarterly


Minimum Investment

$50,000


Security

Registered first mortgage & director guarantees


Loan to Valuation Ratio ‘LVR’

The loan agreement allows for a minimum LVR of 60% exclusive of GST. The LVR is less than 58% of the Subject Property on an ‘as if complete’ basis and exclusive of GST.


Co-investment

Yes – CPF has invested into this Loan

 

About the Property Security 

  1.  First Registered Mortgage over property(s) located at:
    •  244 Camp Flat Rd, Bli Bli QLD ‘Hillside Retreat’
    • 118 Elof Rd, Caboolture QLD ‘Sanctuary’
  2. Referred to in this document collectively as the Subject Property

  3. First Registered General Security Agreement over the Borrowing Entity(s)
  4. Corporate Guarantee and Indemnity provided by the respective Corporate Guarantor(s)
  5. Personal Guarantee & Indemnity provided by Henry Gordon Ledingham – a director of the Borrowing Entity(s)
  6. Tripartite Deed between the Borrower, Lender, and Civil Contractor
  7. Assignment of the Licence to use Intellectual Property granted by the holder of the copyright to use all plans, drawings etc. For constructing and marketing the project..

Valuation

‘As if complete’ valuation of the Subject Property $16,890,000 inclusive of GST.

Application Forms & Fund Documents

To Register as a Wholesaler

Please download our Accountant’s Certificates and return to us via email.

Registry Forms

Click here to change the details relating to your account.

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