Payton Capital / Projects Borrowed
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. |
Tom Watson
Michael Tadros
Sam Alexiadis
Lachlan Winten
Nick Reardon
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