PMA Assists With Funds for Subdivision When Borrower Didn’t Meet Bank Servicing Requirements

Scenario

The Borrower has an extensive  background in farming and property development.

The purpose of this loan was to refinance an existing loan and complete the subdivision of one of their properties into twelve 100-acre lots.

Security on offer was four rural/residential properties and one commercial property all in regional locations on the Central Coast of NSW 

Why PMA?

The Borrowers could not get bank finance as they did not meet the servicing requirements of a traditional bank. 

PMA Solution 

The four properties offered as security were located on the Central Coast of NSW.

Many private lenders do not look favorably on deals involving regional locations, but PMA does not have these restrictions.

We were able to lend against these properties at very competitive and appropriate LVRs, enabling a refinance of the existing debt and a significant cash-out for the borrower to complete the project.

So, if you are a broker in a regional location or have clients in regional Australia, PMA is here to help.

Details

Loan Amount: $3,520,250 combination first and second mortgage

Property Value: $6,772,500

LVR: 59.75%

Term: 12 months prepaid plus 3 monthly extension

Broker Commission*: $58,084

*with no clawback

Exit

The exit strategy was to pay out the loan using the proceeds from the sale of biodiversity credits from a biodiversity stewardship program. The second option was to sell the commercial warehouse and one of the other security properties.