How PMA Provided Flexible Finance to Support the Expansion of a Vineyard in the Hunter Valley
Scenario
The Borrower is a property investor and currently serves as the CEO of a small-to-medium enterprise (SME).
The purpose of the loan was to refinance an existing facility and provide additional working capital for the construction of an event venue and a keeper’s residence on a vineyard property.
Security offered was a vineyard-lifestyle property spanning 55.85 hectares, featuring partly productive vineyards. A valuation report was obtained to support the application.
Why PMA?
The Borrower was unable to obtain bank finance due to minimal income from the security property which is to be transformed into an event venue. Sponsor had also recently changed employment, which did not meet the bank’s income verification criteria.
PMA Solution
PMA provided short term funding of six months to refinance the existing private lender and provide enough cash out to commence the proposed development to function centre.
The loan term will allow the borrower to meet mainstream income requirements and refinance to a mainstream lender.
Details
Amount: $1,425,000 (First Mortgage)
Property Value: $3,300,000
LVR: 67.68%
Term: 6 months prepaid plus 2 monthly extensions
Broker Commission*: 27,431.25 (incl GST) Broker received 0.75% Referrer Fee and 1.00% Service Fee (+ GST)
*with no clawback
Exit
The exit strategy was to refinance the facility into a construction loan.
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