Professional Service tailored to your financial needs.
FULLY FUNDED CONSTRUCTION OF
HIGHWAY CONVENIENCE CENTRE
Tantamount to a pot-of-gold that required a little more digging to uncover…a savvy commercial developer but without the required picks & shovels.
The Problem
A block of dirt, regional location, favourable stage-1 DA but only one pre-committed tenant, retirement-age principals, limited developer equity and no external loan servicing. The main sponsor had been recovering from the GFC. He and a co-investor had acquired two adjoining rural-residential lots along a highway with conservative funding by a private lender.
A complex project: required boundary realignment, partial rezoning, separate Development Applications for various components.
With favourable stage-1 Development Consent over a part of the land permitting a fuel outlet + convenience store and supplementary café; the balance of the site would remain raw land.
The LINK Solution
LINK formulated a forward-thinking finance solution and targeted its commercial credit memorandum to a commercially-oriented specialist financier.
LINK’s commercial credit memorandum included project feasibility and scenario analysis.
The End Result
LINK negotiated favourable terms for a commercial construction finance facility providing full project funding with interest capitalization and provision for variations.
The solution included a subdivision and take-out on completion of stage-1 with an early exit structured for the initial co-investor and funding options to continue with subsequent stages.
LINK also assisted the tier-2 contract building company with application, approval and payment of monthly progress payment claims to ensure uninterrupted works and no delays.
OUTLINE
Loan Amount
$6,515,000
Lender
Tier-2 Specialist Project Financier
Lender Exposure
70% LVR ("as if completed" Vacancy in Possession basis)
Loan Term
12 Months Construction
Interest Rate
8.75% pa, fixed for the term
Lender Estab. Fee
1.75 % of loan amount
Exit Strategy
Take out (asset acquired by an investment trust)
Location
Southern Brisbane/South-Eastern Queensland