Client Overview

  • The Client is a Victorian-based waste processing business
  • The Client exchanged on a 7-hectare industrial property in 2018 with a two-year settlement. The property is strategically located for the business to expand
  • The Client wanted to maximise the debt funding to settle the property transaction

Facility Overview

  • GCI structured a loan facility to facilitate settlement of the property purchase which minimised the equity the Client was required to contribute
  • The facility was structured to leave the Client’s existing lenders in a first ranking secured position with respect to business assets
  • GCI was able to take a first ranking mortgage on the acquired property

Commentary

  • The Clients incumbent bank was unable to offer sufficient leverage to settle the transaction despite the value of the property increasing materially. GCI was able to look beyond traditional banking parameters to offer the lender a tailored loan facility

Providing Value Added Credit

Speed

GCI was able to provide a committed term sheet within 4 weeks of initial presentation of the transaction. The transaction settled 4 weeks following execution of the term sheet.

Flexibility

GCI was able to offer the Client flexibility with term, interest rate and capitalisation of interest. This flexibility provides the borrower with optionality regarding the future use of the property.

Network

By utilising our extensive network in the property industry, GCI the team were able to get comfortable that the true value of the property was well above the original purchase price and the most recent formal valuation. This allowed the borrower to draw further funds to settle the transaction and minimise additional equity contribution.