9.5m- Apartments and Retail shops residual debt refinance
9.5m- Apartments and Retail shops residual debt refinance
Service
9.5m- Apartments and Retail shops residual debt refinance
Client
Diversfied Property Group
Location
VIC
The Challenges
- Our client was reaching practical completion on a mixed-use property development that achieved 50% presale sale debt cover.
- The project required refinancing of residual senior debt against unsold stock from a major Non-Bank Property lender.
- Clients required additional lending to allow for the fitout works to the penthouse apartment as well as ground floor retail store to which was to be retained as owner occupiers.
Our Solution
- Working with the client and their existing major bank EMK Thomas undertook a thorough analysis of the clients trading entities and property holdings to demonstrate the serviceability of the residual debt to meet major bank ICR and LVR requirements.
- We were able to build out a comprehesive debt servicing model that took into account:
- Our clients existing retail trading business operations,
- A 12 month financial forecast modelling the profitability of the new retail store,
- The groups existing passive property holding income, and
- New proposed rental income from the residual stock assets
Client's Result
We achieved on behalf of our client group:
- Major Bank full refinance of residual debt construction facility of $9.5m over favourable tenure and covenants suit
- Additional major bank funding line of $500k for contribution towards ground floor retail and penthouse apartment fitout works.