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.
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.
Could your next project benefit from some expert development finance? Get in touch.
For expert advice:
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Sydney NSW 2000
P / 02 8916 6246
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Melbourne VIC 3000
P/ 03 8692 0082
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Brisbane QLD 4001
P / 07 3041 4136
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