A client sought to refinance vacant farmland in Victoria valued at $27.9 million. The land sat outside an active PSP, with rezoning and development opportunities at least five years away. The client’s motivation was to hold the asset long-term, as it had been in the family for many years, and they recognised the future value of the site. The refinance was required after a major bank withdrew due to a change in appetite for the asset class. To achieve the client’s goals, a higher LVR facility was needed.
AMF structured a $18.972 million loan at 68% LVR, secured against the farmland and supplemented with additional residential assets. Despite the client belonging to a complex group with some prior adverse findings, AMF was able to demonstrate the strength of their trading businesses through a detailed workshop paper and lender discussions. This enabled us to secure appetite at higher gearing where most lenders would not engage.
