balmain + commercial + big deals +
Refinance of a development site with holding income
June 2010
| purpose | Refinance a major bank through the Mortgage Trust sector. The security property is an industrial asset zoned Mixed Use with Development Consent for residential redevelopment located in South Sydney. The property has some short term tenancies with demolition clauses providing the developer some holding income. |
| loan limit | $3,100,000 |
| lvr | 65% |
| loan term | 2 years with the right to repay early without penalty |
| borrower type | Full time property investor / developer |
| facility type | 8.25% variable rate loan |
| interest rate | Variable 7.25% representing 2.5% margin |
The Benefits
Despite many Mortgage Trusts effectively shutting their doors to new property lending, there are some select Mortgage Trusts still open and willing to lend. Balmain is in a unique position to access these funders.
Balmain was able to re-gear the asset, releasing funds to the borrower for the purpose of readying the property for development.
We were able to demonstrate servicing to the satisfaction of the lender through the provision of lease agreements and personal tax returns only – we did not require all financial statements for the wider Group. Balmain simply provided an overview of the Group’s other assets and debt commitments with a commentary on how these are serviced.
Speed of Approval: The loan was Formally Approved within 2 weeks of Balmain submitting the formal Credit Paper.
balmain + commercial + big deals +
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