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Structured Property Solutions

Over the years we have successfully funded many Commercial Property loans, the following are a small selection for your review:

 

An existing commercial property owner was looking at expanding their property portfolio however with the proposed acquisition would increase their LVR to 75% which was significantly higher than the prevailing major banks LVR parameters.

We were approached to find a solution that would allow the borrowing potential to ‘stretch’ to the required borrowing level.

Solution

By using our credit enhancement strategies inherent in our high LVR commercial jumbo loan program the LVR was able to be stretched to achieve the desired LVR as the borrowers debt servicing ratio was over 1.8 times cover.

The facility will be on a P&I basis with initial LVR starting at 75% reducing to 65% over 5 years at which point the facility can be refinanced with mainstream lenders.

 

Loan Amount: $22,000,000
LVR: 75%
Rate: 4.95%
Risk Fee: 2.15% (once off payment at settlement)

 

Our client had an existing $23M facility expiring with a non-bank lender that was no longer offering commercial loans.

Our client could demonstrate servicing through historical income however asset type, location and also lease expiry dates combined to make the proposal unattractive to all the lenders that were approached by our client.

The borrower was a managed investment scheme and as such personal guarantees were not available.

Solution

By using the high LVR commercial loan program we were able to approve the facility with the risk underwriter to a 60% LVR. The borrower agreed to principal reductions over the term to reduce the facility to 50% LVR over the 5 year term which was the LVR which was deemed to be acceptable to mitigate exit risk.

 

Amount: $24.2M
LVR: 60%
Rate: 5.85%
Risk Fee: 3.65% (once off payment at settlement)

 

Our client required funds to assist with the purchase of a vacant development site, adjoining existing development sites already held by the borrower. Funds were to be structured to purchase the site and consolidate with the adjoining sites to create a super lot, allowing synergy savings and a greater development return. The developer had an abundance of experience in similar projects, major banks were unwilling to assist.

Solution

We secured a facility that allowed our client to consolidate the two sites and obtain planning permits for construction. During the period he obtained the required presales and successfully refinanced in to a construction facility.