balmain + commercial + big deals +
Industrial Facility — Construct and hold
February 2010
| purpose | To refinance existing land debt, construct new 2 storey industrial complex and then hold for investment phase. |
| loan limit | $2,800,000 |
| lvr | 70% of the on-completion valuation |
| loan term | Covered construction and move to investment |
| facility type | Progressively drawn construction advance |
| interest rate | Commercial in confidence – quite competitive margin |
The Mandate
The project involves a 2 storey, stylish and functional industrial complex in a growth area. The key occupier is attracted to the property location and layout, which includes a clear span warehouse.
The client had secured land and obtained development approval on expectation that the incumbent bank would quickly fund construction at discussed percentages of total development costs. Negotiations had become protracted and in the mean time the GFC had seen lending criteria in general tighten.
The Benefits
Balmain structured a solution and arranged loan facilities that enabled the project to be built. Balmain remain involved and have provided guidance and support as the project progresses. The facilities included transition into the investment phase, as it is a long term wealth creation project for the directors.
Balmain's expertise was utilised at many stages of the project, from origination to assisting with satisfying conditions precedent and ongoing assistance.
balmain + commercial + big deals +
quick contact