PMA Provides Fast Funding to Support Construction Completion

Scenario

The borrowers have extensive experience in the concreting industry and commercial property development, with a proven track record of delivering similar industrial projects.

They required additional funding to complete an industrial property development that was approximately 95% complete. The loan was used to fund the remaining construction works and support the project's successful completion.

The security offered comprised the partially completed industrial development featuring 24 brand-new warehouses ranging in size from 102sqm to 532sqm.

Why PMA?

The borrowers required urgent funding and were unable to secure traditional bank finance due to the lender's lengthy valuation process and associated delays.

PMA Solution 

PMA provided a very quick solution. We were able to not require a formal valuation relying instead on a Council Rates Notice to establish the land value of the property. This saved at least $15,000 for our client. The loan was for 12 months on a fully capitalized interest basis.

Details

Amount: $550,000 ( First Mortgage)

Property Value: $6,550,000

LVR: 8.40%

Term: 12 months prepaid plus 3 monthly extensions

Broker Commission*: $6,150

*with no clawback

Exit

The planned exit strategy was to refinance the loan with a mainstream lender following completion of the development.