Sheel Capital was recently engaged by a seasoned property developer to fund a rooming house in Victoria’s Southeast. The purpose of this rooming house was to provide accommodation to the elderly who are seeking a residential community. The rooming facility consisted of 35 fully equipped rooms with communal areas to encourage connection.
The client presented us with a pre-signed lease with the tenants who were to operate the premises. The client had spoken with brokers previously who weren’t able to find a solution due to the specialised nature of the property.
The client wanted us to find a solution where:
At Sheel Capital, we delved deeper into the client’s history of property development. This included taking a comprehensive look into the size of past projects, and current profits and projects. With the gathered data, we approached Judo Bank and they were able to confirm their appetite for this type of transaction.
Judo requested further details on the tenant and the client, as well as the lease agreement and full long-form valuation of the property. Given the highly specialised nature of the security, we had to call a few valuers and were able to assign the job to CBRE.
Following this, we visited the clients at the property with the bankers from Judo, which helped the lender in assessing the sponsor of the transaction. The transaction was then placed with Judo Credit and we were able to provide a solution for the client.
We were able to provide the clients what they were after, in every way:
No covenants were placed on this transaction for the client.
Enable the set-up of a customised facility for the elderly to create their own community.
