Arranged construction finance to successfully completed Commercial Property Development
Woolworths Medowie, NSW
Issues
- Major shareholder came into financial distress during the project, significant works completed on site
- Bank perceived that shareholder put the development company at risk and therefore ceased funding
- Numerous contractors were unpaid
- Anchor tenant’s deadline unable to be met, reluctant to extend Agreement to Lease terms
Development Finance Partner’s scope
- Negotiate Agreement to Lease extensions with Anchor Tenant (vital for the project to be feasible)
- Arrange highly-geared alternative funding to complete, with a lender who would not negatively perceive the shareholder/developer
- New construction funding to include payment to unpaid contractors for existing works.
Results
- 6 month delay to delivery date negotiated with Anchor Tenant
- Arranged funding to complete, including payment to contractors for existing works, at very high gearing level of 83% of on-completion value
- Project successfully completed.
Contact us to see how we can turn your plans into reality.
Could your next project benefit from some expert development finance? Get in touch.
Sydney Office
Level 3, 31 Alfred St
Sydney NSW 2000
P / 02 8916 6246
Melbourne Office
Level 30/35 Collins Street,
Melbourne VIC 3000
P/ 03 8692 0082
Brisbane Office
Level 18, 175 Eagle Street
Brisbane QLD 4001
P / 07 3041 4136
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