Projects

The challenge
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.

The solution
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.

The challenge
A client had purchased a large site in a desirable area of Christchurch with vendor assistance. The property was to be developed in six stages, with partial vendor repayment at the conclusion of each stage.

They had obtained pre-sales of 29 of the 37 lots. All pre-sales were to private purchasers and had 10% deposits paid. The client was able to complete the civil works as part of his contribution to the development, albeit with some funding required.

However the project was unattractive to established lenders due to the lack of equity, despite pre-sales providing 1.5 times of total debt cover.

The solution
Global Pacific was able to provide a funding solution by persuading the vendor to underwrite any shortfall of funds and complete the development if the client was unable to. The added challenge here was to ensure the vendor wouldn’t be tarnished as a developer if the underwrite was invoked.

The subdivision was subsequently completed and all financial commitments were satisfied.

The challenge
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.

The solution
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.

The challenge
A client was looking to purchase 4,000 sqm of land that included a vacant house, as a site for a future development. Even though she had 40% of the equity required, no trading bank would back her as the bulk of her income was sourced offshore.

The solution
Global Pacific negotiated a six-month loan facility that allowed the client sufficient time to gain building consent. (Resource consent had already been provided as part of the land purchase.)

Because the client was an experienced developer with a solid exit plan, we were able to market the opportunity to a private investor who funded the mortgage on a security lend for six months on interest-only terms, with minimal pre-conditions.

The challenge
The clients were looking to purchase their first home situated on a 10ha plus lifestyle block which generated additional “farm” income over and above regular off farm income.

The clients had signed a lengthy “lease to buy” purchase agreement with the deal further complicated by a portion of the off farm income being generated overseas and having added value to the property over a number of years the current valuation was considerably more than the agreed purchase price. Local residential brokers had been unable to find a funder as the combined deal circumstances where to far out of the “tick the box” criteria of any mainstream Bank despite considerable client equity.

The solution
Global, was able to raise a first mortgage of approx 75% lvr against the higher valuation figure and combined with the clients accumulated savings and their KiwiSaver contribution they were able to secure their first home after some thirty years of renting.