Hub Australia
Hub Australia
Service
Hub Australia
Client
Privately owned business
Location
VIC, NSW, QLD, CANBERRA
Industry
Premium Office Workspace Operator
Hub Australia
Privately owned business
VIC, NSW, QLD, CANBERRA
Premium Office Workspace Operator
As a coworking space provider, this business was adversely impacted by COVID restrictions.
Despite the end of restrictions, the resulting increase in WFH created expectations the business would suffer an extended downturn in revenue.
Our client needed certainty of funding, and covenants with flexibility, built around tracking progressively improved trading.
After a deep dive into the customer base and the changing nature of demand, our role was to explain to prospective lenders the business drivers had fundamentally shifted. Businesses now needed flexible office accommodation rather than fixed floor space / fixed price rental, with amenities that attract people back to work.
Landlords were now also seeking coworking tenants at the behest of larger tenants who want less floor space, but the option of coworking facilities onsite where demand on any day exceeds their reduced floor space.
The existing funder was replaced by a Club comprising 2 private lenders on equal terms and conditions .
Term, pricing, amortisation and covenant settings provided certainty to allow the business to recommence its expansion, funded by cashflow, whilst the changed dynamics of demand allowed the business to recover lost occupancy levels.