Defensive Opportunity

Wirrabara Village

Dural, New South Wales

Origination Date December 2017

Term 12 months

Project Value
  • $14 million (‘As Is’)
  • $29 million (‘With DA Approval’)

Loan Facility $11 million

Credit Metrics
  • Loan to Value Ratio (LVR): 82%
  • Loan to Value Ratio on DA Approval: 47%

Loan Type First Mortgage Land Loan

Asset Class Retirement Village

Project Highlights
  • 15.63 acres of land across three 5 acre titles
  • Value underpinned by property’s potential development into retirement living community

White & Partners has provided a 12 month first mortgage land loan to fund the acquisition of a parcel of land in the Sydney suburb of Dural. The property is 15.63 acres in size and is set across three 5 acre titles. A Development Application (DA) has been lodged for a retirement living community comprising 37 Villas, 80 Apartments, and a 72 bed retirement aged care facility (RACF).

Dural is located in Sydney’s northwest, approximately 34 km from the Sydney CBD. The Property benefits from being located next to Dural’s town centre and amenities such as shops, restaurants, medical centres, childcare centres and civic areas. Dural is an established retirement living destination with 15% of people in the catchment aged over 65. The composition of this group in the Dural catchment is also growing, with the over 65 population growing at 3.3% p.a. compared with a general population growth of 2.0% p.a.

At loan origination, a site compatibility certificate has been issued by the New South Wales Department of Planning and Environment. The site also fits White & Partners’ preference for an alternative use, with the property’s subdivision into three 5 acre titles matching demand for rural acreage in Dural. The developer of the project is an experienced South East Asian real estate fund manager.

The loan facility was structured as a typical first mortgage land facility with additional security in the form of a corporate guarantee and charge over the shares in the project. Whilst Wirrabara Village’s location and alternative use nature makes it an attractive loan candidate, the potential DA approval also provides White & Partners a substantial margin of safety. This is particularly relevant as the developer pursues construction of the retirement living community.