28 Apr RSP Case Study: Seniors Living Development 2021
Case Study 1: Seniors Living
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
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.
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