Payton Capital / Projects Borrowed

Construction Finance

High rise apartment tower, Southbank

High rise apartment tower, Southbank
Project valuec.$570m based on remaining security pool
Project detailsThe project was an iconic 103 storey residential apartment tower located in Southbank. The Borrower was seeking funds to refinance the residual debt owed on the project, as well as to provide cash out for group working capital purposes.
Project statusThe majority of the construction (89%) was complete when Payton’s facility was activated. Security was taken over the remaining 492 apartments (titled and untitled), of which 340 were already sold.
Payton funding$100m
Pre-sales100% debt cover
Term8 months

Construction Finance

Townhouse development, Safety Beach

Townhouse development, Safety Beach
Project value$8.6m
Project detailsThe development of 14 double-story townhouses in Safety Beach.
Project statusThe site was “shovel ready”, with Payton’s mezzanine facility being advanced first to allow the developers to recoup some of purchase cost of the land. The construction facility was advanced in two tranches.
Payton fundingSenior facility (1st) – $4.03m Mezzanine facility (2nd) – $2.04m
LVR1st – 51% of NRV 2nd – 77% of NRV, 91% of Total Development Cost
Pre-sales1st – 100% debt coverage 2nd – 87% debt coverage
Term6 months

Mezzanine Finance

Apartment development, Collingwood

Apartment development, Collingwood
Project value$38m
Project detailsLocated in Collingwood, the project consisted of 44 apartments and a ground level commercial premises, over 8 levels (including basement).
Project statusProject was approximately 60% complete when Payton’s facility was activated.
Payton fundingPayton provided a $10m mezzanine finance facility, secured by a second mortgage over the Collingwood property, as well as another development site located in Abbotsford.

Funds were used to refinance the existing mezzanine financier, and by including the additional security over the Abbotsford property, Payton was able to provide top-up funding to assist with project cost variations that had arisen.

Pre-sales119% debt cover
Term18 months

Business Cashflow Finance

Property portfolio, Victoria

Property portfolio, Victoria
Project valueProperty portfolio was valued at c.$45m
Project detailsThe developer held a large portfolio of income producing commercial and industrial properties, that were mortgaged to Bank Australia. Funds were required by the developer for working capital on a construction project within the group.
Project statusFunds were provided prior to activation of the construction facility to top-up the borrower’s equity component towards the project.
Payton fundingPayton provided a $3m loan, secured by a second registered mortgage on each of the properties within the portfolio.
Term7 months

Construction Finance

Luxury townhouses, Deepdene

Luxury townhouses, Deepdene
Project value$4.7m
Project detailsPayton had funded the construction of four luxury townhouses in Deepdene, with a combined value of c$10m.

Following completion of the townhouses, Payton provided a residual stock facility over the two unsold townhouses, which refinanced the mezzanine construction facility and allowed surplus funds out to the developer to assist with their next project.

Project statusConstruction of the townhouses were complete, with the pre-sales sufficient to repay Payton’s senior construction loan.

Payton’s residual stock loan was structured and agreed prior to maturity, allowing the mezzanine finance loan to be rolled into a new first mortgage facility upon settlement of the pre-sales.

Payton fundingPayton advanced a total of $2.82m via first mortgage loans over each property.
Term12 months, with a right of early repayment after 6

Development Site

Broadacre land, Woodstock

Broadacre land, Woodstock
Project value$39.5m
Project detailsThe property was a 41-hectare site located in the Donnybrook-Woodstock Precinct Structure Plan (PSP), with a development application for a 444 residential lot subdivision pending.
Project statusPayton provided total funding of $23.75m to assist with the purchase of the site.

Upon issuance of the permit and achievement of pre-sales, the facility was refinanced into a construction facility.

Payton fundingFirst mortgage loan – $19.75m. Second mortgage loan – $4m
LVR1st – 50% of the ‘As is’ value. 2nd – 60% of the ‘As is’ value.
Term6 months, with interest capitalised in the facility.

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