Background

Loan Purpose:

• To complete the construction of a new childcare centre at the security property in Morrinsville – capable and experienced child care operator
• Resource and Building Consents were issued
• The building was already well-progressed with the highest risk portion of the build complete when the bank refused to continue support
• Development loan with an appointed Quantity Survey to certify monthly drawdowns from development funds held by the lender
• Interest 100% capitalised and paid monthly from the interest provision retained by the lender
• On-completion LVR = 42%
• Property leased and sold prior to repayment of the loan