Newly Settled deal 🎉I South Nowra, NSW
-Loan Amount: $15,175,000
-LVR: 68.50% on NRV
-Loan Type: Construction
-Term: 18 months
Trilogy are pleased to have recently provided a tailored funding solution for the development of a new Industrial Complex comprising; 47 two storey office/warehouses, a café and 118 at grade parking spaces in South Nowra, NSW.
This deal presented a couple of lending obstacles, involving an existing caveat and a land buy-back provision to the local council impacting the property as legitimate security for the development loan within a finite period.
With the assistance of the broker and borrower client, we persevered, as the deal fundamentals were reasonably strong, the developer builder was already fully committed having purchased the property and 10% of the works completed ($1.3m+), and essentially there was nowhere else to go without the council’s cooperation.
Fortunately, it only took a few extra weeks for an acceptable resolution to be reached with the council and their solicitors to allow Trilogy to proceed with the advancement of funds.
From a lending structuring perspective, we were able to stretch the LVR to 68.50% on the Gross Realisable Value (excl. GST) to accommodate the borrower’s funding requirements and accept a lower level of presales (11) equal to just 30% initial debt-cover.
Based on knowing the time and energy the developers have spent on this project over the past 2.5 years, I really look forward to seeing this project come to life over the next 15 months.
Seeking funds for your next Industrial project? Enquire with us today!
#commerciallending #propertydevelopment #constructionloans #industrial
