Owners of a 14-townhouse site that needed to restructure a development loan
12-month term with capitalised interest and fees
The developer was building a 14-townhouse site that they had owned for many years. Bank lenders had provided funds for a 12-month period but the project had hit delays due to weather and difficulty in finding trades people. The client needed to restructure a development loan that would allow suitable time to complete construction, create unit titles and sell down the properties.
Global Pacific introduced two investors into a split first mortgage on the existing single title to refinance the existing bank loan, with additional funds to complete the remaining houses that were 80% complete. Because this was a respected experienced developer with a strong business plan, the investors were satisfied debt could be reduced by selling down just 50% of the completed houses.
Six months into the loan term, all houses were completed and partial debt reduction was achieved. The developer was able to bring the project to fruition and the investors were happy that all goals and deadlines had been met.