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Successful projects

High rise apartment tower, Southbank
Construction Finance
High rise apartment tower, Southbank

Project value

c.$570m based on remaining security pool

Project details

The 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 status

The 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

LVR

40%

Pre-sales

100% debt cover

Term

8 months
Townhouse development, Safety Beach
Construction Finance
Townhouse development, Safety Beach

Project value

$8.6m

Project details

The development of 14 double-story townhouses in Safety Beach.

Project status

The 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 funding

Senior facility (1st) - $4.03m Mezzanine facility (2nd) - $2.04m

LVR

1st – 51% of NRV 2nd – 77% of NRV, 91% of Total Development Cost

Pre-sales

1st - 100% debt coverage 2nd – 87% debt coverage

Term

6 months
Apartment development, Collingwood
Mezzanine Finance
Apartment development, Collingwood

Project value

$38m

Project details

Located in Collingwood, the project consisted of 44 apartments and a ground level commercial premises, over 8 levels (including basement).

Project status

Project was approximately 60% complete when Payton’s facility was activated.

Payton funding

Payton 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.

LVR

77%

Pre-sales

119% debt cover

Term

18 months
Melbourne CBD skyscrapers view from La Trobe St
Business Cashflow Finance
Property portfolio, Victoria

Project value

Property portfolio was valued at c.$45m

Project details

The 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 status

Funds were provided prior to activation of the construction facility to top-up the borrower’s equity component towards the project.

Payton funding

Payton provided a $3m loan, secured by a second registered mortgage on each of the properties within the portfolio.

LVR

65.55%

Pre-sales

None

Term

7 months
Luxury townhouses, Deepdene
Construction Finance
Luxury townhouses, Deepdene

Project value

$4.7m

Project details

Payton 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 status

Construction 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 funding

Payton advanced a total of $2.82m via first mortgage loans over each property.

LVR

60%

Pre-sales

None

Term

12 months, with a right of early repayment after 6
Broadacre land, Woodstock
Development Site
Broadacre land, Woodstock

Project value

$39.5m

Project details

The 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 status

Payton 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 funding

First mortgage loan - $19.75m. Second mortgage loan - $4m

LVR

1st - 50% of the 'As is' value. 2nd – 60% of the 'As is' value.

Pre-sales

None

Term

6 months, with interest capitalised in the facility.