Purchasing rural quarry assets that were currently leased on a royalty basis
$1.030m first mortgage
24-month term with interest paid monthly
$320,000 second mortgage
12-month term with interest paid monthly
The client required funding to purchase two run-down quarries that were currently leased on a royalty basis. The total land and buildings purchase price was $1.050 million.
The business had been previously involved with an alternative finance broker who had been turned down at the last moment by a mainstream bank. Finance was in place to purchase some existing plant and machinery and provide additional funding for new plant, but without the core land and building funding, the entire deal was under threat.
Global Pacific raised a first mortgage of $1.030m and a second mortgage of $320,000. This represented approximately 130% of the purchase price, thereby guaranteeing settlement of the entire deal.
After a short period of ownership, Global Pacific raised a further $250,000 against the two originally purchased quarries and refinanced a third quarry that the client owned.
Twelve months later Global provided a new $350k second mortgage secured against the two original quarries.