Industrial Warehouse & Office Unit Purchases

$10.1m Commercial Facilities

Business & Corporate Finance, Debt Advisory

$10.1m

Commercial Property Purchase

Furniture Retailing

The Scope

Our client identified a newly constructed industrial property as a suitable property to consolidate their head office and warehouse space.
The property was two adjacent units which enabled the client to operate from one unit and let out the other unit in the short to medium term with the flexibility to expand to the second unit in the future if required.
The client required funding for the purchase of both units with no guaranteed additional income from the second unit as it did not yet have a tenant.
Nexus was engagement to arrange the funding of the two units with the intention to minimise the equity contribution to enable the business to maintain a liquidity buffer given the current uncertain economic conditions.

Nexus engaged with valuation firms early in the process to ensure the price point they were offering would obtain valuation support.
Conducted initial enquiries with the existing lender to ensure the transaction would fit within their Bank’s appetite.
Prepared a comprehensive credit application that illustrated the strength of the business, highlighting its competitive advantages and the significant reinvestment in the business which underpin the businesses’ strong credit risk profile.
Completed detailed debt servicing modelling, cost benefit analysis and debt capacity & cash flow leverage analysis.

We received a credit approval from their existing Bank within 2.5 weeks of submitting the application.
Total commercial funding package of $10.1m which included 100% of the purchase price, stamp duty, GST and additional fit-out funding.
Finance was approved with a generous 15 year payback (given high LVR).
Fit-out funding was provided uncontrolled to the client so they could manage the payments.
In conjunction with the new finance the rate on their existing facilities was reduced saving the client close to $15k per annum.
The transaction finalized the client’s strategy of purchasing their own national warehouse network to better control their inventory management with the added benefit of long-term wealth creation.