FUNDING FOR THE FINISH LINE – COMMERCIAL PROPERTY
Client Scenario: Our client, a seasoned Commercial Property Developer, required funds to complete their latest property development project – a commercial and retail space of over 1000sq metres. While construction was finished, our client needed finance for the last-leg in the project, that being fit-out and holding costs such as marketing.
Merx Solution: At 60 per cent LVR, our client was short on equity required by their main bank and asked Merx whether we could provide a short-term funding solution. Using second mortgage security on the commercial and retail space, we advanced $500,000 for a period of six months. This has enabled our client to complete the fit-out and secure tenants. Once lease negotiations are complete, we expect that the new property valuation will comfortably support our client’s main bank LVR requirements, at which time the Merx facility will be repaid.
PARTNERING PROPERTY DEVELOPMENT SUCCESS
Client Objective: Our client is a Property Developer who tends to work with ‘many irons in the fire’ at any one time. An opportunity arose to acquire a new development site but, because his finances were fully committed, his bank couldn’t offer any more funding.
Merx Solution: We recognised our client had an immediate need for funding until some other projects were completed. We invested alongside him by advancing a short term loan so he could buy the land. Outcome: Our client was able to acquire the land with the funding provided. Upon completion of his other projects he was able to transfer funding back to the bank who were once again able to provide finance.
Can we help you with fit-for-purpose finance for your property development project? We welcome you to get in touch with the team at Merx Growth Fund.