$40.3m Property Construction and Property Investment- Private Property Group
Service
Property Construction & Development Funding
Client
Private Family Group
Location
Melbourne Vic
The Challenges
Our client was introduced to us seeking an initial requirement to procure finance for the acquisition of a large parcel of industrial land flagged for future development.
Subsequently our client engaged us to advice on structuring finance solutions for three additional upcoming investments comprising of:
- Funding for an additional three separate parcels of industrial land all for future development with differing equity participants to each transaction,
- Refinance of residual stock assets post construction completion, and
- Structuring a funding solution to facilitate the construction and development of a 50 unit Industrial complex where our client wanted to undertake the project as an owner builder.
Our Solution
We were able to implement a medium to long term financing strategy that assisted the group with various financing requirements including:
- Utilizing Non Bank property lenders to provide structured debt solutions for pre dev permitted and non-permitted assets,
- Utlising Non Bank property lenders for construction related property projects whereby high leverage on lowers presales and nill builder retentions were accommodated providing the group with significant cash flow benefits,
- Develop a process that paved the way for future residual stock assets to be refinanceable into major banks,
Working on conjunction with the groups accountants and solicitors we have also assisted in navigating a future pathway into setting up major bank funding on core Investment assets by using Cash flows from the groups project management business, construction Business and third party asset rentals to meet Major Bank lending parameters.
Clients Result
Our client was able to obtain significant benefits from the solutions implemented including:
- The settlements of key industrial pre development assets paving the way for 3-5 years of proposed future construction and development works,
- The mobilising of key construction program on a mid-size development which allowed for the group to also reactivate its PM business and construction business deriving future cash flows that would be used to assit with debt servicing requirements of major banks on investment funded assets.
- Access to stand alone residual stock facilities geared to allow for equity contributions to pre dev settlements, whilst also being appropriately structured for a gradual sell down of the residual assets.