$4.7m Build and retain mixed use development – Owner builder & owner occupier
$4.7m Build and retain mixed use development – Owner builder & owner occupier
Service
$4.7m Build and retain mixed use development – Owner builder & owner occupier
Client
Private Property Developer and Property Investment group
Location
Melbourne Vic
The Challenges
Sponsors required a debt facility up to a 55% LVR to construct as owner builders a 7 level mixed use development.
Deal parameters were further complicated by the sponsors need to occupy 30% of the NLA by related party entities post completion with no pre-leases to third parties entered into prior to construction
Our Solution
EMK Thomas ran a tender process across all major bank lenders and ultimately procured a funding solution that provided the client with:
– The ability to build and retain 100% of the completed asset,
– Approval for the Sponsor to act as owner builder,
– Approval to owner occupy 30% of the NLA post completion, and
– Nill requirement for further pre- leases to third parties prior to construction completion.
Client's Result
Clients benefitted from major bank partnering which provided a highly structured Construction debt facility in conjunction with a pre-approved take-out finance facility post completion.
The structure allowed the client to undertake a construction program and strategically retain a 7 level mixed use asset, whilst also providing certainty to the client in relocating and occupying part of the development for their Professional services business requirements.
The sponsors also benefitted from being able to market the remaining NLA post completion without the need to for third party pre-lease commitments.