Case Studies

LVR:

Rate:

$10,450,000

67.50% of GRV

11.50%

    

 

 

 

 

 

 

    

Luxury Residential Loan– Lite Doc & Cash Out - Private Lender
The applicants had purchased the investment property some 4 ½ years ago. During that time they had renovated the property extensively. Their existing facility with their bank was $2.5M which was used predominately to renovate and improve the property.

 

The clients wished to refinance this facility and have cash out of an additional $2M which would increase the loan amount to $4.5M however they could not provide financials to demonstrate serviceability so their bank was unable to assist.

Solution
GCC was approached to facilitate the finance request. A valuation was ordered and it came in at $10M. We secured a facility of $4.5M from a private lender without the need for financials, at a rate which was competitive compared to the prevailing Bank rates.

LVR:

Rate:

$4,500,000

45%

8.28% pa

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial Loan - Refinance – Land Bank – Cash Out

Our Borrower was looking to raise finance against an Industrial property situated in an inner west suburb of Sydney to allow for the refinance of the existing first mortgage ($2.5M) and to raise an additional $2M to assist with preliminary costs associated with the proposed development of a 10 storey mixed use building including basement parking and public domain improvements.

 

Proposed loan term is 12 months during which time all necessary pre-sales and development preliminaries are expected to be completed which will allow for an orderly refinance of this facility via a construction finance facility.

 

The borrower approached their existing bank to assist however it was declined because the bank was not comfortable with the cash out nature of the request.

 

Solution

The borrower had current financials however the serviceability was below what the banks consider acceptable and more importantly there was a significant cash out portion of the loan, as such a private non-bank lender was required. GCC facilitated an approval through a private non-bank lender geared to an LVR of 60%.

 

Loan Amount: LVR: Rate:

$4,300,000 60% 9.25%

 

 

 

 

 

 

 

 

 

 

 

Our clients acquired the development site at one of Sydney’s top beaches under an option agreement dated early 2006 for a price of $8.25M which settled late 2007. In the interim our client obtained approval to construct four (4) luxury apartments with a GRV of $25.49M

 

The clients had presold three of the apartments with sale proceeds of $19.591M which will provide more that 100% debt cover for this proposed transaction.

 

The client had approached all the major banks through and they all declined because the project was to build ‘luxury’ apartments which they all deemed to be too risky given the current market.

Solution
GCC was successful in obtaining approval via a foreign bank for a facility of $13.45M for a period of 18 months representing an LVR of 70% of TDC.

LVR:

Rate:

$13,443,000
70% of TDC
7.50% (BB+3.50%)

 

 

 

 

 

Our clients entered into a contract to purchase 2 commercial units in South Yarra Melbourne. The commercial units have a 12 month rental guarantee from the vendor however as settlement was fast approaching they tried to have the units leased but were unable to do so.

 

The clients broker tried settling the deal with several banks however was unable to obtain approval as no lender that they approached would accept the rental guarantee and would only consider the proposal if tenants were secured. Both borrowers have a strong employment position.

Solution
GCC approached a non-bank lender and achieved an approval of 70% LVR which was higher than the 65% LVR the clients originally requested.

LVR:

Rate:

$724,500

70%

8.70%

  

 

 

 

Our client sought to “land bank” a development site in Adelaide pending commencement of a sixty unit residential apartment complex. Finance required was to repay an existing first mortgage and provide a level of working capital for the pre construction component of the proposed project.

 

The property was purchased for $1.445M and our client was looking for the maximum LVR available.

Solution
GCC facilitated an advance of 80% of the value of the property with the transaction settling in late November 2009 using a 1st and 2nd mortgage.

 

$1,005,000

70%

10.25%

 

$144,000

80%

18%

  

 

 

 

 

 

 

 

 

 

 

Our borrower was seeking to utilise equity in a commercial property in Adelaide to assist with the purchase of an investment residential unit. There was a requirement that the funding was to be secured on a stand-alone basis solely against the commercial property. The borrowers existing bankers were not prepared to accede to this request and settlement of the unit was imminent. Full financial statements were provided to support the transaction however in view of the cash out nature of the borrowing it was necessary to fund through a private lender. The funding requirements were refinance of $1.2M and additional funding of $425K provided towards the unit purchase.

 

GCC facilitated an approval through a private non-bank lender secured solely against the commercial property which enabled the unit purchase to proceed.

Loan Amount: LVR: Rate:

$1,625,000 65% 9.45%

 

 

 

 

 

 

 

 

 

 

 

Commercial Loan – Full Doc – Non Bank Loan

Our client had agreed to purchase a block of 16 units for $1.8M from a vendor who was about to go into receivership in a large rural Central NSW town. Our client had seen the value of purchasing the property and converting it from single title to individual strata titled residencies.

 

Our introducing broker submitted the transaction to several banks however was unsuccessful as the borrower required an LVR of 70% and based on overall income serviceability was not strong enough for the banks requirements as they would only take a percentage of the rental income into consideration. Location of the property also posed a significant hindrance.

 

Solution

GCC was successful in securing finance from a private non-bank lender funding who would lend 70% of the property value in a semi rural location and take into account the full potential rental income.

Loan Amount: LVR: Rate:

$1,170,000 70% 9.25%

 

 

 

 

 

 

 

 

 

Specialised Security – Full Doc – Refinance with Cash Out

Our client owns and operates a hotel and adjoining golf course in a central Queensland regional centre and was seeking to raise funds to provide working capital to assist with non structural renovations to the hotel living quarters, upgrade the hotel interior and certain areas of the golf course.

The borrowers existing bankers were not prepared to fund the working capital and as such it was necessary to arrange refinance and provide the required cash out of $450k for working capital against the hotel freehold and golf course.

 

GCC facilitated an approval through an institutional lender who was prepared to allow for the progressive drawdown of the working capital requirement.

Loan Amount: LVR: Rate:

$1,500,000 50% 8.00%

 

  

 

 

 

 

 

 

 

 

 

Our client sought to raise finance against a residential property situated in Sydney’s Eastern Suburbs which was operating as a boarding house. Funds were required to allow for the refinance of an existing bank facility of $880K and wanted cash out of $200K for investment purposes. There were a couple of dishonors on the existing loan statement due to the borrower being overseas at the time.

 

In view of the cash out requirement, nature of the security and credit history the introducing broker found it impossible to place through any institutional lender which he approached.

 

GCC facilitated an approval for a loan through a private non-bank lender based on an LVR of 67% of the “as is” value of the property.

Loan Amount: LVR: Rate:

$1,080,000 67% 10.50%

 

 

 

 

 

 

 

 

 

 

 

Commercial Loan - Refinance – Non Conforming - Private Label

Our clients operate a wholesale and retail business in West Australia. A relocation of their business operations coupled with gearing their business activities for a major contract that did not eventuate placed a enormous strain on their cash flow.

 

The clients embarked on an asset sale and although they substantially reduced their debt position it was not deemed sufficient enough by their Bankers. At the same time their trade creditors began to take legal action and the tax office issued notices.

 

Global Capital was able to secure funding via a private non-bank lender who understood the borrowers’ situation and agreed to payout the outstanding mortgage, pay creditors and provide a level of working capital to assist the business grow.

Loan Amount: LVR: Rate:

$2,500,000 50% 10.50%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Funding was sought to refinance an existing mortgage over 16 Strata Titled commercial offices within a five level modern commercial complex located in the Gold Coast. Our clients are a major group of chartered accountants.

 

The properties were purchased in Oct 2005 as a brand new (strata titled) building and the Chartered Accountancy practice moved into the building in Apr 2006. Our client occupies the fourth floor of the building and approx one third of the third floor. The balance of the third floor, the second floor and the first floor are all occupied by tenants.

 

Our clients required 75% LVR to repay their existing lender and to provide some additional working capital. The clients approached several banks that they had a strong relationship with however the best they could achieve was 65% P&I which did not meet their requirements. They decided to look for a second mortgage that could take the LVR to 75%. Through industry contacts GCC was approached to find a solution.

Solution
GCC was able to facilitate an approval of 75% LVR through a second tier bank on a senior debt which exceeded their expectations.

LVR:

Rate:

$6,320,500

75%

7.15% pa (BB + 3.00%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Land Subdivision – Full Doc

Our applicant has built over 4000 apartments and townhouses in the Sydney, Brisbane, Gold Coast and Sunshine Coast markets over the years.

 

Their principal bankers, however due to the recent economic slowdown decided to withdraw their support and call in approx $100M worth of loans, which highlights the folly of having all their projects with one lender on a cross-collateralisation basis. They have commenced a self imposed refinance process to re-establish their business operations on a more stable diversified funding basis.

 

One of our clients projects required circa $30M to build 120 townhouses (on a staged basis) on a property acquired by the group on the 31st July 2007.

 

GCC was approached to fund Stage 1 of the project ($14.1M for 52 townhouses). Subsequent funding requests for Stages 2 and 3 will follow as Stage 1 is completed.

 

Our client has a relationship with a project marketing firm who had agreed to purchase thirty four (34) sales totaling $10.25 million (gross) in Stage 1 with 5% cash deposits.

 

Solution

GCC was able to facilitate an approval of 75% of TDC through a second tier bank which accepted 5% deposits and with all presales going to just the one buyer.

LVR:

Rate:

$14,7114,000

75% of TDC

7.65% pa (BB + 3.50%)

  

 

 

 

 

 

 

 

 

 

  
Residential Development Finance - Lite Doc/Private Label

The subject property was purchased in November 2007 for $1.463M. It was the borrower’s intention to secure construction funding through their existing Bank however they are not in a position to accommodate this requirement which has led to a decision to refinance existing exposure and seek development funding elsewhere.

 

The fact the developer had no presales and also significant credit issues made the option of Bank funding impossible.

 

GCC was approached to refinance their existing Bank ($750K) and provide the construction funding to allow for completion of a 9 storey 22 residential unit complex at located in NSW Mid North Coast.

 

Solution

GCC was successful in obtaining approval via a private lender for a facility of $7.37M for a period of 18 months representing an LVR of 65% of GRV. There were no presales or financials required for this loan.

LVR:

Rate:

$7,370,000

65% of GRV

11.50%