6 May, 2010
In my last GLOBAL UPDATE I said it looked like the credit markets were finally starting to ease up and that finance does seem to becoming more available.
Well there was certainly some skepticism from readers in response to that statement. “Show me some examples” was the reply.
So in this newsletter I thought I’d give you some idea of the sort of finance we’ve been able to arrange at Global Pacific in these difficult times.
But first let’s talk about Global Pacific. Our web site describes our business and the people involved – click here to view.
What we do
Our business is advising on and arranging all forms of debt and equity finance for all forms of property and business.
We are an independent firm of commercial finance brokers with access to all the banks, prime lenders and specialised financiers in New Zealand. We function like a real estate agency firm where the individual members operate independently with their own clients, but share in the experience of us all.
Fees are success based payable on the satisfactory delivery of a previously agreed and mandated proposal. In other words we work with you on the type of finance your require, report back to you on the conditions under which we believe we can obtain it, receive a mandate from you to proceed which specifies those conditions and our fees, and only once a firm proposal is received incorporating those conditions does our fee become payable.
In all cases the clients know they need the money but are often not sure what form it should take. We’re also seeing clients seeking the wrong sort of finance. So our service and expertise is not only obtaining the funds for them but also advising on the type that best suits their circumstances.
We also work with residential mortgage brokers, business brokers, real estate agents, accountants, lawyers and other intermediaries, who don’t have the contacts we have in the commercial finance environment, to arrange funds necessary for their clients to complete the transaction they are working on.
Another part of our business is more like a consultancy role where we are asked to advise on structuring offers to obtain funding (usually equity), undertaking negotiations with existing financiers when there is disagreement, and advisory roles generally.
And what we’re doing now
As you’d expect much of our work involves refinancing loans that were becoming due from financiers either no longer in the market literally – like Hanover and Strategic – or who had temporarily ceased or restricted lending while they sorted out their own affairs – like most of the other lenders. But it does include new loans from both banks and non-bank lenders.
Here are some examples of finance we have arranged in the last six months.
· Refinanced existing first and second mortgages and arranged development finance to complete the construction of a partially built 8 unit apartment complex purchased at mortgagee sale.
· Refinanced existing bank term loans and facilities for a business involved in the publishing industry that wished to expand its operations. Obtained term loans and facility finance from a different bank at attractive rates.
· Refinanced existing capitalised first and second mortgages on a boutique accommodation lodge and vineyard and also on a large bare land residential lifestyle block with an olive plantation.
· Refinanced existing first and second mortgages on a partially completed commercial building and raised additional finance to refurbish and tenant so that the new valuation supported the availability of further finance to purchase another vacant commercial property.
· Refinanced a bare block of land for 6 months to allow the client sufficient time to create the new titles and carry out necessary civil works.
· Refinanced a luxury 5 star lodge that had relied on wealthy in-bound tourists. Arranged the refinance of the existing first mortgage and 12 months pre-paid interest to cover mortgage costs and to allow suitable time to restructure the business and source suitable JV partners.
· Arranged bridging finance to purchase a large dairy farm prior to the settlement of the sale of an existing farm.
· Arranged the finance to purchase 8 new inner city apartments for university accommodation.
· Arranged the finance to purchase bare industrial land based on an as is valuation which was greater than the purchase price.
· Arranged development finance for an established outdoor adventure business that wished to expand its operations.
· Arranged the finance to purchase a vacant commercial property and convert to apartments.
· Arranged the finance to purchase a two unit site and foundations from a mortgagee in possession and the finance to complete the building of two houses.
· Arranged the finance to purchase bare industrial land on an adjacent property using an existing unencumbered leasehold property in another location.
· Arranged a facility to purchase a sub-divisible mortgagee sale site from a bank and the finance to subdivide into 8 titles.
· Arranged a plant and equipment loan for a successful property developer, with his own civil works business, who had been unable to finance the purchase of a new large bulldozer.
· Advised on the investor and public relations for a listed company surrounding a new issue of shares to existing shareholders and the private placement of convertible notes to qualified persons.
· Assisted an offshore resident buyer in choosing a property investment in New Zealand and arranged finance here for the purchase.
· Structured an offer for participation in an agricultural venture in New Zealand to be presented to offshore investors.
· Consultancy on an on-going basis on behalf of a large scale export manufacturing start-up to secure equity funding and to secure supply of raw material for the manufacturing operation. Provided advice on structuring the supply arrangement agreement and identifying and bringing in offshore equity investors to the manufacturing arm to complete the chain.
For obvious reasons the names and details of the financing and the advisory roles we have given for the above are confidential. Often they involve more than one source of finance including private investors/lenders.
To see the forms of finance we have access to read my recent GLOBAL UPDATE entitled Banks and other Lenders here
Would you be better off tending to the business you know and leave us to arrange the finance with the contacts we have? Or are you frustrated by the attitude of your existing financier?
If so just reply to this newsletter or give me a call.
Global Pacific Corporation Limited
112 Gladstone Road, Parnell,
P O Box 3229, Auckland, New Zealand
Phone +64 9 303 3700, Fax +64 9 303 3031
Mobile +64 21 902 004
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