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