Trading Business/ Property Investment ~ $14.6m

Trading Business/ Property Investment ~ $14.6m

Trading Business/ Property Investment ~ $14.6m

Service

Commercial Property Investment

Industry

Manufacturing Business/ Property Investment/ Development

Client

Trading business supporting property development & investment activities

Location

VIC

The Challenges

  • Family operated SME that had passively accumulated substantial residential property holdings which were lowly geared.
  • Trading business was providing strong free cash flow before and during Covid and remained underutilized in its capacity to debt service.
  • Client group had a mandate to grow the families passive property holdings and required access to debt facilities to make strategic acquisitions.
Trading Business/ Property Investment ~ $14.6m

Our Solution

  • EMK Thomas sought to provide the group with access to over $3m in undrawn facility limits that assisted with future property investment & development activites.
  • Simultaneously we were able to achieve a reduction of 75bps on the existing group debt limits of $11.6m, as well as improve free cash to the trading business by restructuring the business’ PPE funding lines.

Clients Result

$3m access to undraw facility lines/ reduction to existing and future interest costs/ improvement to free cash flow allowing for greater debt servicing capacity.