Our client purchased a development site located in Melbourne for $13.00M (plus gst). Funding for the acquisition was provided by a Melbourne based Private Lender and they provided a $6.5M facility (50% LVR) with a 24 month term.

The property was sold with a Planning Permit for a five storey commercial building which has subsequently been amended to allow for a 250 Apartment building with a ground floor Retail component.

GCC was approached to assist in obtaining a $2.5M Second Mortgage Facility over the subject property to assist with the early costs associated with the proposed residential development. The developer could not demonstrate serviceability and a private non-bank solution was required.

Solution
GCC successfully facilitated an approval through a private lender for a 2nd mortgage facility for $3M from a private lender who was comfortable with the developer, the property and property location.

 

Second Mortgage: $2,500,000
LVR: 70% (includes prepaid interest)
Rate: 18.00%

Our client had an existing facility of $15.0M and an updated valuation came in significantly short and 65% LVR was not workable. A $2.5M equity contribution was required to rectify the non-monetary default and to roll over the facility.

Our client did not have $2.5M in equity available and even though our client had met all repayments the existing lender placed them in receivership.

We were approached he help the client well after the receiver was appointed to come up with a strategy to help.

Solution
Given that a receiver had control of the assets a straight refinance to a main stream lender was impossible.

We secured a private non-bank lender who was willing to go to a maximum of $10M as that was there maximum lending amount which left us significantly short.

We secured through one of our investor/lenders an additional second mortgage of $5.5M to cover the shortfall to allow successful restructure and exit of the receiver.

 

Second Mortgage
Amount: $5,500,000
LVR: 75%
Rate: 15.00%

Our client had an existing debt with a mortgage trust which was in arrears for the last several months and as a result needed to refinance. Due to the arrears a straight refinance at 72% LVR was not possible in the current market even though their cash flow position had recently improved.

Solution
We facilitated an approval through a private lender for a 2nd mortgage facility which reduced the existing debt to 65% which was acceptable to the existing lender for a period of 12 months by which time existing loan statements will be in order allowing a straight refinance to be secured by GCC.

 

Second Mortgage
Amount: $885,000
LVR: 75%
Rate: 18.00%

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