Property Portfolio Refinance
$20M Property Investment Funding Package
Service
Commercial Property Investment
Funding Amount
$20M
Funding Purpose
Refinance & Equity Release
Industry
Property – Residential
The Scope
- Our client was completing a review of their residential property portfolio, and they were looking to leverage equity within their portfolio to release to pay down debt against other assets including their PPR (primary place of residence).
- The clients were looking for gearing of 70% against a portfolio of small unit complexes and semi-specialised residential assets to enable debt against personal assets to be extinguished which would leave their PPR unencumbered.
- The additional equity being released was required to be provided uncontrolled and available to the client at settlement.
- Their current facilities were with two lenders and would ideally be consolidated to maximise the result.
- In conjunction with the increase in gearing, it was intended to simplify the security structure and also reduce the number and frequency of covenants.
- Ideally the transaction would also be able to achieve an interest rate reduction through the consolidation of debt with one lender.
What We Did
- Prepared a comprehensive Information Memorandum which clearly articulated the strength of the sponsor, their demonstrated track record of delivery, and the quality of the assets.
- Highlighted the key drivers behind the request which included delivering on the uncontrolled equity release and the other factors including simplification of securities, removal of covenants and reduction in overall interest costs.
- Provided meaningful mitigants to the higher-than-traditional LVR to provide the lender comfort.
The Result
- Approved funding package of $20M including $16.3M refinance + $3.4M equity release provided to the client with no controls.
- Consolidated debt across two lenders.
- 70% LVR with 3 year term and interest-only structure.
- No cross-securitisation across SPVs.
- PPR released from security pool.
- No covenants.
- $0 Application Fee.
- Interest savings of >$150k.
- Any number of the above outcomes would have been a great result for the client. Achieving all of them together has comfortably surpassed expectations.
