The Sponsors have a background in property development and property investment and currently own six investment properties.
The purpose of this loan is to refinance two loans with other non-bank lenders and pay builders and consultants for the development of one property.
The Sponsors can't get bank finance as they don't have the financials to support serviceability.
Security on offer is two residential properties and two vacant blocks of land in Cessnock, a town close to the Hunter Valley wine region in NSW.
The exit strategy is to sell one of the residential properties. The two vacant lots will be subdivided into two properties and also sold with plans to pay back the loan within five months.