Strategic Funding for Investment, Acquisition, or Refinance

A childcare operator required an additional $3 million to complete the acquisition of a new centre in Sydney. The primary lender was only able to finance up to 65% LVR, leaving the client short on settlement funds and at risk of losing both the acquisition opportunity and their 10% deposit. Adding to the complexity, the operator had not yet achieved sufficient enrolments at the new centre and fell outside the bank’s preferred pre-enrolment requirements.

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.

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.