$4.08M Refinance Delivered Quickly to Support Farming and Property Development
Scenario
The borrowers had backgrounds in farming and property development.
The purpose of this loan was to refinance an existing loan settled 12 months ago and release equity to support ongoing projects.
Security on offer included four residential properties and one commercial property:
Property 1 – 491.87 ha: Land intended for subdivision and future development
Property 2 – 48.35 ha: Residential property with four bedrooms, two bathrooms, and a detached lock-up garage
Property 3 – 49.06 ha: Double-storey house with five bedrooms, two bathrooms, and two carports
Property 4 – 40.01 ha: Residential property with three bedrooms, two bathrooms, and a garage
Property 5 – 455 sqm: Commercial property comprising a warehouse split into two leasable areas.
Why PMA?
The borrowers were unable to secure traditional bank finance as they did not meet standard servicing requirements, and the funds were required urgently.
PMA Solution
We were able to structure a short-term (4 month) facility to enable the client to maximise the return on their property investment through realisation of biodiversity credits that were available from one of the properties.
Details
Loan Amount: $4,080,000 ( First Mortgage)
Property Value: $6,700,000
LVR: 60.90%
Term: 4 months prepaid plus 4 monthly extensions
Broker Commission*: $89,760.
*with no clawback
Exit
The exit strategy was to repay the loan using proceeds from biodiversity credits or by selling two of the security properties.
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