Facility Renegotiation & Equity Release

$5.5m Facility Renegotiation + $1.5m Equity Release

Commercial Property Investment

$7m

Service Station Acquisitions & Improvements

Specialised Property – Service Stations

The Scope

The client had an upcoming settlement for the purchase of a brownfield site close to DA.
Funding was required for the purchase of the site and for the re-development of the site to a service station.
The client has a demonstrated track record of acquiring and improving closed or underperforming service stations.
An aggressive growth strategy over the past few years had meant a number of opportunities were taken advantage of but the funding structures were not optimal.
Client was looking to extract the equity from one property for the new project and to also re-set all existing facilities to improve the security profile, structure and pricing.

Prepared extensive information memorandum providing comprehensive overview of the Group property portfolio.
Highlighted the ability to identify underperforming sites and significantly improve their performance through considered Cap Ex and quality management.
Clearly articulated the funding request including strategic rationale for the acquisition and accompanying detailed funding table.
Determined appropriate LVRs against each existing property to restructure the loan facilities so there were no ‘cross-securities’ and each loan only had one property security.
Demonstrated the improvement in the credit risk profile of the Group through historical execution of strategy.

The Bank approved the funding using equity in an existing security with no requirement to use the new property being purchased as security.
Funding for the Cap Ex of the site was also released to the client enabling them to control the payments.
All existing facilities were restructured so that each facility only has one property security with LVRs appropriately aligned to each asset.
The credit risk margin was significantly reduced saving the client over $50k per annum in interest.