$42.5m – Group Funding restructure
$42.5m – Group Funding restructure
Service
$42.5m – Group Funding restructure
Client
Property Investment Group
Location
VIC, QLD
The Challenges
EMK Thomas was engaged by the client group to actively seek a refinance of the clients existing property portfolio loan facilities of $21m away from its transactional bank, as well as simultaneously seek to establish Bank committed funding of circa $15m to be used for future property acquisitions that could be relied upon quickly to achieve strategic property acquisitions.
The client group also required the ability to utilise funding lines towards reimbursement of equity costs expensed in funding property development activites.
Our Solution
We structured the funding request that considered historical and future business income as wellas property income supporting debt limits up to $36m.
Limits were supported by existing and future acquired freehold securities.
Client's Result
We procured initial funding lines of $36m with a major bank lender that grew to $42.5m over the course of 12 months as the clients continued to invest into commercial freehold asets throughtout Australia.
We were able to achieve a group borrowing costs sub 1.8% margin.
Clients were able to accumulate substantial property holdings over time at cheaper acqusition utilising existing facility headroom limits.