Client Objective
Our client had entered into an Option to acquire a commercial investment property in Darra for $4,300,000 and required guidance on achieving the most efficient purchase structure, including maximising leverage.
Strategic Approach
Having initially secured the property with vacant possession, they negotiated an Agreement for Lease prior to settlement – which would drive a higher valuation.
The Challenge
The challenge for STAC Capital was to negotiate a loan wherein the lender would accept the valuation uplift, rather than the purchase price, when determining the loan-to-value ratio (LVR).
The Solution
STAC Capital successfully achieved an approval from a bank that agreed to finance against the uplift valuation based on the Agreement for Lease. This solution significantly reduced the client’s equity contribution at settlement.
The Result
This outcome demonstrates STAC Capital’s expertise in navigating complex structuring and financing challenges, enabling our clients to proceed with confidence.
