balmain + commercial + big deals +
Retail Investment Asset
August 09
| purpose | To refinance a commercial loan that our client previously had secured by the subject asset and their luxury family home. |
| loan limit | $1,600,000 |
| lvr | 70% |
| loan term | 3 Years |
| interest rate | 6.20% p.a. (fixed one-year) |
The Mandate
A property investor purchased the property 3 years ago with a view to lease up the vacant retail shops and improve the net rental income. Due to the short term leases and some vacant space, the previous lender had sought to improve it's security position by also taking a mortgage over the borrower's home.
With the initial loan facility approaching expiry the client mandated our office to seek a revaluation of the property and find a refinance alternative to take advantage of recent interest rate reductions.
The Solution
Considering the substantially tighter credit conditions in the commercial property market, finding an alternate lender with an appetite for the transaction at the required gearing of 70% LVR would generally prove difficult. However, Balmain was able to use its unique 'market radar' to quickly narrow down potential funders, negotiate our client's position, and move forward.
Our office was subsequently able to provide a new 3-year facility secured only by the retail property at an interest rate of 6.20%. The client is greatly relieved to no longer have the family home encumbered and now enjoys $18,000 p.a savings due to the reduced interest rate negotiated.
balmain + commercial + big deals +
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