balmain + commercial + big deals +
$75M Project in Wollongong
March 2010
| purpose | To fund a partially completed project passed up by the borrower's own bank. |
| loan limit | $12,000,000 |
| lvr | 16% of on completed value |
| loan term | 6 months |
| facility type | Construction |
The Mandate
The client is an emerging force in the construction work out sector. Having already rescued two smaller projects in 2009, the client sought to employ similar techniques on a much larger scale. The client bought a substantially completed asset from a mortgagee in possession and had contributed his own cash to re-commence the project and fund the builder to get him back on site. In the meantime he secured $30M worth of fresh presales in a whirlwind marketing campaign.
The client's own bank passed on the funding opportunity and given the high level of difficulty in obtaining funding for a partially completed project (notwithstanding the outstanding land mark status of the asset and the value he had added in obtaining fresh presales) Balmain successfully:
- raised $3M of private equity to keep the project moving
- negotiated suitable terms with a First Mortgage funder to provide the balance of funds to complete the project.
Balmain's swift action in solving problems and negotiating structure and credit which the banks could not do directly of their own accord resulted in a massive win for all parties involved.
Deal done in 2 weeks.
balmain + commercial + big deals +
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