Construction Completion Loan for Commercial Development in Melbourne
Scenario
The Borrowers are experienced property investors and developers. This loan was structured to release equity to fund the final stages of a 25-unit commercial property development in the Western suburbs of Melbourne.
The security provided is a vacant residential block in the suburb of Williamstown in Melbourne.
Why PMA?
The Borrowers could not access traditional bank finance due to the extent of their existing debt profile.
PMA Solution
PMA was able to provide a first mortgage over the residential block in Williamstown in order for the borrowers to release equity in order to fund the completion of the 25-commercial units.
Details
Loan Amount: $1,050,000 (First Mortgage)
Property Value: $1,750,000
LVR: 60.00%
Term: 6 months prepaid plus 6 monthly extensions
Broker Commission*: $5,775.00
*with no clawback
Exit
The loan is to be repaid through the sale of the completed commercial units or leasing the Units to generate income and repay the debt.
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