Borrow
Successful projects
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
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
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
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
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
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.
