Recent Settlements

A property investment group required a substantial funding facility to refinance an existing facility and consolidate multiple commercial holdings into one streamlined structure. The portfolio comprised an office and retail complex in inner Melbourne generating stable rental income.

Challenges / Objectives faced by the client:

• Secure a longer-term facility at competitive rates, ideally with a Tier 1 Bank only
• The client’s existing tenant spread didn’t include an anchor tenant.
• The client wanted one of their commercial properties released rather than be amalgamated into security.

The client, a property investor, required a $46,000,000 commercial loan to refinance a neighbourhood shopping centre in Sydney’s South West. After their existing lender unexpectedly withdrew from the market, the client was given six months’ notice to secure alternative funding.

Several challenges complicated the transaction: the centre lacked sufficient anchor tenants, the IGA was underperforming, and multiple leases were short-term and due to expire within 12 months, which could impact the loan term a bank would approve. In addition, the car park, an essential component of the complex, was held on a separate title from the shopping centre. These factors made arranging timely funding from a major bank complex and required a carefully structured approach.

An experienced property investor required a $30.17 million commercial loan to release equity from a high-value commercial asset located in Sydney’s CBD. The purpose of the funding was to acquire additional sites for future development and to strengthen the client’s business balance sheet, and overall overall enterprise value.

Challenges faced by the client included:

• Client wanted cash-out with no linkage or additional security over the acquired properties.
• Existing commercial building challenges as had several short term leases.
• Timing was critical as the acquisitions were approaching settlement deadlines.
• Limited personal Guarantees.