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.
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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.