Retail Development – Christchurch CBD

Retail Development – Christchurch CBD
Finance

Loan Amount:

$5,300,000.00

Funding lines

Interest Rate:

8.50% p.a.
Term

Loan Term:

12 Months

Location

Location:

Christchurch

Background

Loan Purpose:

  • To refinance an existing loan and fund Stage 1 of a new retail development comprising of 8 unit-titled retail units with a combined floor area of 1,200m2
  • A second mortgage is held over the borrower’s personal home as additional security
  • 3 out of the 8 units were pre-leased and an agreement was in place to sell 1 unit
  • Development loan with an appointed Quantity Surveyor to report and certify monthly drawdowns from development funds held by the lender
  • Interest was 100% capitalised and paid monthly from the interest provision retained by the lender
  • Repayment will be made upon the sale of completed units