PMA Provided a $6M First Mortgage to Drive Completion of Premium Residential Development

Scenario

The borrower is a seasoned finance professional with over 20 years of experience across corporate finance, project finance, mergers and acquisitions, and infrastructure advisory. He has held senior roles at several top-tier professional services firms. The purpose of this facility was to refinance an existing loan and fund the completion of a 40-lot residential development.

The development spans 27.5 hectares and borders a future golf course. With full development approval in place, the completed project will include:

• A 140-room hotel featuring a function centre, multiple restaurants and bars, a day spa, and a wellness centre
• 20 luxury eco-villas
• 40 residential housing lots

Why PMA?

Traditional bank financing was not available, as the project is not yet income-producing and did not meet conventional serviceability requirements. The borrower required a flexible funding partner to support the completion phase.

PMA Solution 

PMA was able to quickly establish the validity of the exit strategy through discussions with both the valuer as well as borrower and broker directly. The borrower quickly provided additional evidence required to support the exit showing it was achievable within the timeframe and agreed to provide regular updates.

We also arranged an assignment of the existing valuation completed by a reputable firm saving both time and money. 

With valuation and exit strategy in place PMA was able to provide the funding required to finalise the purchase and allow works to be completed to establish new lots for sale.

Details

Loan Amount: $6,000,000 (First Mortgage)

Property Value: $12,000,000

LVR: 50.00%

Term: 9 months prepaid plus 3 monthly extensions

Exit

The loan will be repaid through the staged sale of the 40 residential allotments, expected to commence following the completion of infrastructure works.