FULLY FUNDED CONSTRUCTION OF HIGHWAY CONVENIENCE CENTRE

Tantamount to a pot-of-gold that required a little more digging to uncover…a savvy commercial developer but without the required picks & shovels.

The Problem

A block of dirt, regional location, favourable stage-1 DA but only one pre-committed tenant, retirement-age principals, limited developer equity, no external loan servicing.

The main sponsor had been recovering from the GFC. He and a co-investor had acquired two adjoining rural-residential lots along a highway with conservative funding by a private lender.

A complex project: required boundary realignment, partial rezoning, separate Development Applications for various components.

With favourable stage-1 Development Consent over a part of the land permitting a fuel outlet + convenience store and supplementary café; the balance of the site would remain raw land.

The LINK Solution

LINK formulated a forward-thinking finance solution and targeted its commercial credit memorandum to a commercially-oriented specialist financier.

LINK’s commercial credit memorandum included project feasibility and scenario analyses.

The End Result

LINK negotiated favourable terms for a commercial construction finance facility providing full project funding with interest capitalization and provision for variations.

The solution included a subdivision and take-out on completion of stage-1 with an early exit structured for the initial co-investor and funding options to continue with subsequent stages.

LINK also assisted the tier-2 contract building company with application, approval, and payment of monthly progress payment claims to ensure uninterrupted works and no delays.