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August 25, 2018

Loan Product Alert August 2018

Following our last Product Update regarding a invest debt / term loans with interest cover requirements of less than 2 times, Stamford is pleased to advise it has access to another competitive loan offering from a new lender in the Australian market offering larger term / investment debt.

High level details as follows:

Loan size – $25M to $150M.
LVRs – up to 65% interest only (higher leverage may be considered pending scenario).
Interest Cover – less than 2x considered as lender is not APRA regulated
Term – 2 to 10 year terms available (note – local banks typically max out at 5 year terms).
Interest Rate – BBSY (currently ~2.01%) plus a margin starting from 1.50% to 2.50% pending overall credit and loan term.
Acceptable Asset Classes – established commercial property with strong leasing profiles including:
commercial office;
industrial; and

Who might be interested in this product:

Existing Bank Borrowers – with upcoming loan expiry dates who may be required to refinance or partially repay their loans given the 2 times interest cover requirement.
Existing owners / acquires – of under rented commercial property with existing leases in place and rent reversion opportunities.
Additional Leverage – banks are typically maxing out at ~55% for investment loans and as such the subject loan product offers borrowers additional leverage.
Please contact us to discuss your scenario.