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.
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