Restructure and Increase CRE Debt – Uncontrolled Equity Release $9M

$51M Property Investment Facility ($9M Increase)

Commercial Property Investment

$51M ($9M increase)

Equity Release

Property – Industrial

The Scope

A recently developed industrial development was now fully leased and clients were seeking options and different debt funding scenarios to assist with wider group WIP developments via releasing equity against this now 100% leased 19-lot industrial asset.
Client preference was to have the equity released without bank/funder controls i.e funds to be placed into their account with no conditions/undertakings.

Working with the existing financier; we arranged the valuations and put in place a funding proposal to have $9M equity released.
We prepared the formal funding proposal and worked with the bank’s relationship team on a revised debt structure; given the asset was now 100% leased with a strong WALE and tenant profile.
At the same time, we negotiated new terms which included:
1. Reduction in the interest rate which saved the client circa $168k per year in interest.
2. Agreed on and negotiated milestones to have the personal guarantees released and have the facility non-recourse once certain income hurdles are met.
3. Arranged an equity release of $9M uncontrolled and into the client account for further group developments.

Client was able to push forward with another substantial development utilising a “cheap” funding source i.e a bank against an income-producing asset with no linkage to the new development.
Minimal inputs or time investment from the clients in this process; they left the process to Nexus Capital to handle from start to close.