Our client sought to “land bank” a development site in Adelaide pending commencement of a sixty unit residential apartment complex. A facility was required 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.

 

Senior Debt
Amount:$1,005,000
LVR:70%
Rate:10.25%
Second Mortgage
Amount:$144,000
LVR:80%
Rate:18%

Our Borrower was looking to raise funds against an Industrial property situated in an inner west suburb of Sydney to allow for the repayment 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 which would net a GRV of approx $90M.

Proposed facility 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 refi of this facility via a construction 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 facility, as such a private non-bank lender was required. GCC secured a facility through a private non-bank lender geared to an LVR of 60%.

 

Amount:$4,300,000
LVR:60%
Rate:9.25%

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