When assessing a new Commercial Property Transaction, we always start by determining the client’s key considerations. Only once we understand what the client wants to achieve can we provide an appropriate Commercial Property Funding solution.
Cost of Funds
The focus here is to achieve the lowest Cost of Funds. Typically, these are properties that ticks all the boxes relating to National Tenants, low LVR, product type, location, sponsor strength and experience.
The focus here is to minimise or negate the level of Personal Guarantees required from the owner or borrower. Typically, this is for owners or borrowers made up of a syndication of investors that do not have any appetite to provide multiple Personal Guarantees for every transaction they enter into.
The focus here is to minimise the level of equity contribution from the owner or borrower. Typically, this is for owner or borrowers that have the opportunity to acquire multiple Commercial Properties during the same period of time and they might want to spread their available equity over multiple Commercial Properties.
The focus here is to accommodate relatively inexperienced property owners. Typically, these high net worth individuals or groups have been working in the property industry for an extended period, maybe as a consultant, or investor, but have never owned their own commercial property.
The focus here is on funding Commercial Properties with a higher than normal value. Typically, we will classify any Commercial Property with a value of more than $50 million as a High Value Commercial Property.