The Brokerage arranged two new facilities for a client who had recently completed a residential development and was seeking cash out for their next project. The developer had leased half of the remaining stock to retain for long term investment with the balance of the residual stock to be sold down progressively.
Recognising that the leased apartments should be financed at a cheaper rate than the vacant stock to be sold, we structured a unique solution with 2 separate lenders.
The Brokerage assisted our client through the establishment of a $6.5m lease-doc investment facility with a mortgage fund fixed at 6.30% and a $7.0m residual stock loan with a private lender at 8.95%. This strategic financing will enable our client to maintain the investment assets, manage cash flow and optimise returns on the project as they sell down the balance on their terms.
By leveraging our extensive capital network and expertise in the commercial property market, we were able to negotiate favourable terms and financing arrangements that allowed the client to achieve their goals.
We take pride in helping our clients navigate the complexities of the property market and achieve success in their developments.
Purpose: Investment and Residual Stock
Loan Amount Total: $13,500,000
Lender: Private Lender and Mortgage Fund
To find out more about how we can help, contact our team today.
