QLD
The Brokerage has successfully secured a $14.20 million refinance and equity release facility across two commercial properties to support a revised development strategy.
Our client required refinancing to capitalise on improved planning outcomes for their existing commercial assets in a Transit Oriented Development (TOD) area. The challenge was structuring finance that would provide both the capital and the flexibility needed during an inherently uncertain development approval process.
We structured a facility without interest-coverage covenants, providing our client with maximum financial flexibility while navigating the DA process. This was crucial given the timeline uncertainties typical of planning approvals. We also negotiated agreement for future second mortgage registration, preserving options for construction finance as the development progresses to the next phase.
A key element of our strategy was highlighting the TOD-area planning uplift to support asset valuation and lender appetite. Transit Oriented Development zones offer significant planning advantages, and properly positioning this upside was essential to securing favourable loan terms. Our team managed engagement across multiple existing lenders to ensure a smooth transition and efficient settlement.
The outcome provides our client with the equity needed to fund planning and project works while maintaining strategic optionality. Rather than being constrained by rigid loan covenants, they can now respond to opportunities and challenges that emerge during the development approval process.
Facility Type: Refinance & Equity Release
Loan Amount: $14.20 million
LVR: 65%
Lender: Non-Bank Lender
Key Features: No interest-coverage covenants, future second mortgage provisions
Term: Development-aligned structure
To find out more about how we can help, contact our team today.