Loan Update: How PMA Fast-Tracked a Retirement Village Investment Loan
Scenario
The borrower, with a background in property investment and considered a sophisticated investor, sought the loan to finance an investment in the development of a retirement village in Lake Macquarie, NSW. The borrower used a residential unit in Bondi Beach as security for the loan.
Why PMA?
An application for bank finance had been submitted and was expected to be approved in due course. However, the sponsor was eager to proceed with the works and was not prepared to wait for bank approval.
PMA Solution
The property being developed was a joint venture with other unrelated parties and had a complicated company structure. However the borrower had an unencumbered property, PMA provided a simple solution, offering Registered 1st Mortgage against this and releasing equity for the commercial construction.
Exit
Refinance to a bank in due course.
Details
Loan Amount: $2,600,000 ( First Mortgage)
Property Value: $5,600,000
LVR: 46.43%
Term: 12 months prepaid plus 4 monthly extensions
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