Borrowers.

$30M INCOMPLETE PROJECT OVERSEAS

We were approached to provide assistance to finance the completion of a mixed use project, including retail, serviced apartments and residential apartments in Melbourne which was under construction and approximately 25% partially complete. Equity and funding for the project had been coming out of China, however, funding had stopped and the builder was about to walk off the job. Our client approached us for a local funding solution. We were faced with a range of issues which needed to be addressed in order to successfully settle the proposal including: > Partially complete project > Offshore sponsors > Urgent settlement

Solution

INCOMPLETE PROJECT & BRIDGING FINANCE

Our client was apparently advised by NAB to commence construction and seek finance when he had expended most of his funds. When he approached the bank the loan manager had moved on and NAB declined to assist.

The introducing broker submitted a proposal to a private lender and they were dragging their feet and it was become increasingly difficult for the developer. We were asked to provide an URGENT short term bridging facility for 3 months to keep construction progressing.

Solution

PARTIALLY COMPLETED CONSTRUCTION

Our Clients who were owner builders, had started developing 2 luxury houses in Avalon Beach, Northern Beaches of Sydney. The senior debt was insufficient to complete the project and we were approached to provide funding to cover the shortfall. We successfully funded the shortfall via a second mortgage and the project completed on time with sales that exceeded expectations.

* LVR:90% of TDC

PARTIALLY COMPLETE FACTORY UNIT

Our clients were owner builders who were developing factory units in NSW South Coast. They needed additional funding to complete the project due to cash flow problems. We successfully funded the requirement and the project has been completed.

RESIDENTIAL DEVELOPMENT SITE

Our clients acquired a development site at one of Sydney’s top beaches under an option agreement for a delayed settlement. In the interim, our client obtained approval to construct thirty five apartments. Our client had an approval from a bank, however at the last moment the bank informed our client that they could not settle on the land. Solution IKON Capital was successful in settling the land with a 7 day turnaround, for a facility of $13.45M for a period of 6 months – representing an LVR of 60%.   * Facility Amount: $13,443,000 * LVR: 60%

RESIDENTIAL LOAN – NO DOC

Our client was a semi retired developer who needed to refinance his existing property located on the beach front just south of Sydney. The clients existing facility was in 3 months arrears and the borrower could not demonstrate serviceability, however his intention was to sell the property. Solution IKON Capital secured an approval via one of our private lenders for a $2.2M facility for 12 months which included 6 months interest prepaid within the facility to allow the borrower sufficient time to sell one of the units. * Amount:$2,200,000 * LVR:65%

RESIDENTIAL LOAN – NO DOC

Our client was a semi retired developer who needed to refinance his existing property located on the beach front just south of Sydney. The clients existing facility was in 3 months arrears and the borrower could not demonstrate serviceability, however his intention was to sell the property. Solution IKON Capital secured an approval via one of our private lenders for a $2.2M facility for 12 months which included 6 months interest prepaid within the facility to allow the borrower sufficient time to sell one of the units. * Amount:$2,200,000 * LVR:65%

$30M INCOMPLETE PROJECT OVERSEAS

We were approached to provide assistance to finance the completion of a mixed use project, including retail, serviced apartments and residential apartments in Melbourne which was under construction and approximately 25% partially complete. Equity and funding for the project had been coming out of China, however, funding had stopped and the builder was about to walk off the job. Our client approached us for a local funding solution. We were faced with a range of issues which needed to be addressed in order to successfully settle the proposal including: > Partially complete project > Offshore sponsors > Urgent settlement

Solution