balmain + commercial + big deals +
Suburban shopping centre - refinance
May 2010
| purpose | Refinance existing debt with increase. |
| loan limit | $6,100,000 |
| lvr | 65% of valuation |
| loan term | 3 years |
| borrower type | Investment |
| facility type | Funded loan - monthly interest |
| interest rate | Variable 7.25% representing 2.5% margin |
The Benefits
The client is a long term investor with multiple assets. This loan is secured by a tenanted suburban shopping centre with no cross guarantees.
The existing lender had applied a marked increase in loan margin and their account manager was recommending they roll over the loan at this higher rate. Fortunately their property agent recognised that alternatives may be available referred the transaction to Balmain.
Balmain was engaged to tender the refinance to the market to achieve the most competitive terms available. We restructured the borrowing mix and enabled the client to increase the loan slightly and at a lower rate. As an added bonus, the loan application fee was less than what the client was quoted as a rollover fee.
Our lead negotiating role and coordination of many different aspects has resulted in Balmain becoming adviser to the ongoing projects of the group.
Balmain's expertise was utilised at many stages of the project, from origination to assisting with satisfying conditions precedent and documentation.
balmain + commercial + big deals +
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