Residual Stock Loan
Refinancing
Our client completed a 19 unit development in an inner-ring suburb of Brisbane. Having sold 10 units during the construction period, he approached us to refinance the residual construction debt using the remaining units as security.
Our Solution
The Brokerage was able to structure a new loan which:
- Paid out the more expensive construction loan;
- Provided an additional $500,000 as cash-out;
- Featured capitalised interest, meaning he had no ongoing repayment commitments; and which
- Was secured by only 7 of the remaining 9 units, leaving the developer with 2 fully unencumbered units which he could sell with no requirement to reduce debt.
The new loan provided our client with additional equity and a boost to his cashflow, enabling him to progress straight on to his next project without having to wait to sell his remaining stock.
| Loan Amount | $3,44000,000 |
| Gearing | 65% of the individual unit valuations |
| Interest | 7.99% p.a Capitalised with loan facility |
| Lender | Non-Bank |
To find out more about how we can help, contact our team today.
