Background
DFP were approached by an advisory group, facing a challenge restructuring their existing debt across multiple properties
in New South Wales and Victoria.
The restructuring was necessary to generate significant cash flow and facilitate a principal reduction on a land bank.
This reduction in land value impacted the loan-to-value ratio (LVR) requirement.
Challenge
The client sought a solution that would provide them with substantial cash out facilities to reduce the debt associated with the land bank, ensuring compliance with the mortgage agreement.
Solution
DFP and their network of capitol partners allowed the client to secure a refinancing package of $18,000,000, maintaining an average LVR of 75%.
This not only provided the client with competitive interest rates, but also enabled them to access cash out facilities amounting to over $2,700,000
This empowered the client to reduce the debt associated with the land bank, alleviating financial pressure and ensuring compliance with the mortgage terms.
Results and Benefits
The successful reduction of the land bank facility opened up new opportunities for the client.
By reducing the debt burden, they gained greater control over their portfolio of assets across NSW and VIC.
This newfound financial flexibility allowed them to explore further options and strategies for their properties.
Conclusion
The client effectively restructured their debt and obtained substantial refinancing solutions.
They are now well-positioned to pursue new opportunities and unlock the full potential of their property portfolio.
DFP's expert team, together with their extensive network of capital partners, played a crucial role in securing an optimal outcome.
What DFP Delivered
Type of finance: A mix of loan types were implemented to suit the differing security types.
Term: 1 to 30 years depending loan type for each property asset
Amount: : $18,000,000
LVR: 75%