$19.2m Boutique Residence Development
$19.2m Boutique Residence Development
Service
$19.2m Boutique Residence Development
Client
Trading Business supporting Property Development
Location
Melbourne VIC
The Challenges
The transaction presented several obstacles including:
- Project size exceeded sponsor historical experence
- 100% Pre sale debt cover (including one townhouse to be owner occupied)
- Transaction debt metrics slightly outside general construction facility requirements, and
- A high product finish with a complex build and construction program
Our Solution
EMK Thomas were engaged to run the transaction on behalf of sponsor group.
Through financial analysis of the sponsors business, we were able to demonstrate the capacity for residual debt and gave the senior Construction lender comfort in the transaction presented.
Client's Result
Funding approved at:
• 80% Loan to Cost
• 75% Loan to Value ratio and
• <50% Pre sale debt coverage