Solutions to Complex Problems

Semper has a history of providing structured solutions for complex situations which do not suit bank funding.

One example is a $10,000,000 loan over metro residential properties under an acquisition Option with a major developer, where the Option is secured by way of a registered mortgage. What made this loan workable from Semper’s point of view was the fact the property included fully completed residences offering considerable holding income.

The applicants had attempted to secure bank funding for a low LVR loan over the property, but despite positive promises it was clear the bank had struggled to accumulate the positive internal support necessary to say ‘Yes’. The lengthy bank application process’ never resulted in a ‘yes’ and they found themselves in default with the existing lender when the loan term expired. This threatened to put the Option Agreement at risk.

The first task for Semper was to provide immediate surety to the applicant, the Option holder, and the exiting lender. This was only possible because Semper has the knowledge necessary to provide finance under a Deed of Priority with the Option-holder – enabling them to take actions on the land necessary to progress town planning changes – while protecting the applicant’s and Semper’s interests against any reduction in value that might occur to the security property in the process.

Fortunately, in this case Semper had prior experience with the developer (one of Australia’s largest property speculators) so it was a relatively straightforward process.

Simple, speedy solutions to complex cases are what borrowers should expect from an experienced private credit provider like Semper.