How We Used Working Capital Facilities to help our Client to Refinance

How We Used Working Capital Facilities to help our Client to Refinance

Had your funding fall over? Here’s how we are helping developers refinance

By Michelle Gamble

Refinance & Working Capital Facilities Melbourne, Victoria $8,500,000.

Although like everything with tax, the particular facts may alter the outcome, I am here to clarify the general position in relation to the GST and (NSW) duty treatment of the grant and nomination options.

PROJECT BACKGROUND

Development Finance Partners (DFP) was engaged to assist its client, a mixed-use property investment, development and building group, to procure a six-figure working capital facility to refinance its ongoing activities, after funds were impacted.

THE REASON REFINANCING WAS REQUIRED

The onset and escalation of the Covid-19 crisis during the negotiation and documentation stages resulted in many lenders either suspending operations or reducing lending limits and loan to value ratios.

Market uncertainty also meant that valuation firms were marking down property values.

The transaction itself required that multiple loan facilities secured across nineteen (19) residential properties be refinanced, with sufficient surplus being made available for the required working capital purposes.

DFP’s ROLE IN SECURING WORKING CAPITAL FACILITIES

Under very difficult conditions, DFP was able to leverage the strong relationship with its capital partner to facilitate the successful negotiation of four (4) stand-alone funding packages totalling $8,500,000, individually secured across properties in the client’s portfolio. The working capital facilities were geared to 65% loan to value ratio and documented on attractive terms. Significantly, the transaction was completed and settled within three (3) weeks.

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