28 Apr RSP Case Study: Seniors Living Development 2021

Case Study 1: Seniors Living

CLIENT POSITION:

Loan (limit:             $5,150,000

Term:                       18 months

Enterprise:             Retirement Village / Supported Living

Security:                 Specialised Asset

Lender Type:         Specialised Cash Flow Lender

Location:                Mid North Coast

Bankability:           Improving

The borrower had recently constructed a premium 148-unit retirement village over 5 stages.  The village was receiving high enquiry with only a handful of development units yet to be sold.  In the interim the cash flow of the village was still in “growth” phase as the Deferred Management Fee income was substantially accruing but yet to materialise in a meaningful way (for the banks).  The client needed bridging finance to fund the gap between completed construction and mainstream banking at a point where cash flows have matured, and servicing ratio requirements can easily be met.

RSP SOLUTION:

Full funding requirements satisfied with a flexible security structure to enable ease of transactions when unsold development stock sold.

Exist strategy clearly defined with a mainstream bank lined up to provide the “take out” finance when minimum financial hurdles are met.

Speed to market, ease of transaction execution and significantly reduced funding risk during the transitionary phase of business growth.

Ongoing support from Robinson Sewell Partners