Refinance Construction Finance – Fuel Station & KFC

$5.3m Property Investment Facility

Commercial Property Investment

$5.3m

Refinance Construction Finance

Specialised Property – Fuel Station & KFC

The Scope

The client was wanting to refinance the construction debt for a recently completed KFC and Fuel Station Asset.
The client wanted interest-only terms to preserve cash flow for WIP developments.
Initial feasibility had a forecast yield of 5.50%, however on completion was valued at a 5% yield. Extracting equity at the same time was a key part of the transaction.
The transaction was to stand alone in an SPV.
The asset was brand new, classed as regional, and had a strong tenant and WALE profile.

Prepared appropriate material for funding appetite and all material for a prompt approval process – which was around 2 weeks.
Arranged valuation and ensured debt capacity and gearing on completion would meet a bank’s appetite, and we worked with the existing bank to get to a palatable gearing and interest rate position.
Structured the approval to also include a “cash out” equity release portion to the client on settlement which would assist with DA costs on his next project.

3 Year Term Debt Facility at 67.5% LVR with a bank.
Uncontrolled equity release /cash out to the client on settlement.
A great result for the client on what is regarded as a specialized asset with the banks.