The Sponsors have a background in property investment. They also operate a couple of Subway franchise stores.
The purpose of this loan is to refinance existing business loans with a major bank. The loans fell into arrears during Covid due to deferred rental payments by tenants.
The Sponsors can’t get bank finance as they are unable to satisfy bank servicing requirements and the current loans are in arrears.
Security on offer comprises of four residential properties in Melbourne, VIC (investment property), Peregian Springs, QLD (principal place of residence), Annandale, QLD (investment property), and Albion Park, NSW (investment property). They have also offered a vacant lot in Doonan, VIC as security which has been earmarked for development.
The exit strategy is to refinance to another private lender and add a construction facility for the vacant land in Doonan.
- The loan will be secured by five First Mortgages
- Personal Guarantee from two Individual Sponsors
- General Security Agreement over Corporate Sponsor + PPSR Charge