Our client sought to raise funds to facilitate refinance of an existing facility of $656K against Strata Commercial office suites in Brookvale, NSW.

The borrowing entity comprised 10 SMSF’s which necessitated the transaction being entered into on a non-recourse basis.

Whilst rental income from the security property provided satisfactory debt servicing, the transaction needed to be placed outside normal banking channels.

Solution
We facilitated a non recourse SMSF finance facility via one of our private non-bank lender who was prepared to advance without the need for Director’s guarantees.

 

Amount: $650,000
LVR: 65%
Rate: 5.95% (BB + 3.30%)

Our client sought to raise funds against two Strata Commercial office suites in Melbourne, Vic.

Funds were required to allow for the repayment of Bankwest ($255K), to cover an ATO payment ($162K), a Stamp Duty liability ($58K) and allow for retirement of some inter-company debt ($125K).

There were a number of issues relating to a Trust structure that made it preferable for the borrowing to be on a non-recourse basis with security to be provided by way of a freehold mortgage only.

In view of the nature of the borrowing and notwithstanding stand-alone debt servicing from rental income, it was not possible to place through an institutional lender so a non-bank solution was required.

Solution
We delivered a SMSF facility through a private lender based on an LVR of 65% of the value of the property without the need for Director’s guarantees.

 

Amount: $600,000
LVR: 65%
Rate: 6.05% (BB + 3.40%)

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