Are you being locked out by the big banks?

Posted Thursday, December 07, 2017 Comments (0)

There is no denying the current environment for commercial lending is going through a speculative period; with the lending market constricting in terms of credit approvals, acceptable security and loan terms.

With interest rates remaining on hold at record lows for the 15th month in a row, property investors are feeling the pressure to employ their capital more wisely; but the banks that they would normally go to are becoming reluctant to lend against properties that would have been acceptable six months ago.

How can Balmain help you?

Balmain Commercial has over 30 years’ of experience in commercial property finance and an extensive knowledge of the lending market. We’re able to deliver loans across all types of commercial property, not just those “prime assets” required by the banks.

We specialise in underwriting loans on income producing properties, land and development sites, which assist the sponsor during transitional periods (such as obtaining council approvals and sell down stages). Our ability to form a sound understanding of the underlying asset, the loan purpose and the capacity of the borrower allows us to confidently finance your property or project in the most efficient manner possible.

A success story.

Balmain Brisbane has recently been involved in the funding of several specialised assets across Queensland, including the acquisition and development of a service station.

Our client went under contract to acquire a DA approved site to redevelop a dilapidated service station and also secured a 15-year Agreement For Lease with a major multi-national oil company.

Balmain Commercial was able to secure construction funding from a Big Four Bank and an additional mezzanine loan to assist with the acquisition. Post construction, Balmain was successful in securing an investment facility to refinance the construction lender to another major bank under more favourable terms.

Details of the initial senior and mezzanine funding are outlined below:

  Senior  Mezzanine 
Loan Limit $2.92M  $500K 
Loan to Value Ratio 65%  75% 
Interest Rate 3.72% p.a.  20% p.a. 
Loan Term 6 months  6 months 

Call Balmain for an obligation free discussion about your commercial finance needs and for more information on how we can provide funding for your property.

Michael Levings is an Analyst at Balmain Brisbane, specialising in sourcing commercial investment, construction and residential loans up to $3 million for property investors, developers and owners in South East Queensland. He is also taking the safe option of packing his bags and running as far away as possible for the G20 long weekend. 

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