Case Study | Residual Stock Loan – Sydney, NSW

$15.45M, Residual Stock @ 80% LVR, Debt Restructure, Sydney Metro, NSW 

Background

Our client engaged with DFP to assist in procuring funds to:

• Refinance a recently completed townhouse project and cross collateralised 2^nd facility secured by a portfolio of residential properties
• The key objective to lower the current borrowing costs.

The Results

1. Settlement of a $12.26m First Mortgage Facility

• Geared to 80% Loan to Value (LVR)
• Structured on a two-tier basis
  (Senior tranche to 65% LVR, Second tranche to 80% LVR)
• Capitalised interest to assist in the sell down of the townhouses
• An agreement to release part sale proceeds to the Second Mortgage lender once the First Mortgage debt reduced to 65% LVR
• Settled on 6-month-old valuation 

2. Settlement of a $3.20m Second Mortgage Facility

• Geared to 75% Loan to Value (LVR)
• 2^nd behind $11.5m (combined) bank loans
• No valuation required (inspection only by lender)
• Competitive rates and fees
• Capitalised interest

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