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July 1, 2018

Loan Product Alert July 2018

The majority of Bank’s are now requiring a minimum 2 times interest cover for commercial property term debt loans, which
pending an assets net income, restricts LVR’s available.

For Borrower’s seeking additional leverage, Stamford, via one of its capital lending partners has access to an interesting
loan product for commercial investment property which requires a minimum 1.2 times interest cover. High level details
as follows:

Loan size – $2M to $35M.
LVRs – up to 70% (I/O) or up to 75% (P&I).
Min Interest Cover – 1.2 times (subject to a portion of the loan being fixed).
Term – 2 to 4 years.
Interest Rate – from 4.80% p.a.
Establishment Fee – from 0.75%
Acceptable Asset Classes – commercial, industrial, retail and residential (leased & in one line).
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.
Developers – sitting on completed residential stock which they intend to hold.
Developers – holding development sites (with exiting use income potential), which can’t be activated given market conditions.