Pragmatism
in Queensland.

Acquisition Finance, $5m
Case Study by Adam G

Local Investor
Commercial

At Jadig, we are experts in development funding, but we also love to get behind other businesses where we can see an opportunity to help. Take our client in Bundall, Queensland for example.

The group had acquired a new commercial asset – a single level 4,050 sqm building with mezzanine office, gym and assorted commercial tenancies – at auction with a 12-month settlement. Their plan was to relocate as the anchor tenant, enjoying the more central location, with existing tenants in the building on various lease contracts. As well as move in, their imminent plan was to commence interior fit out and refurbishment works to further improve the asset and add value.

But their bank had other ideas. Their position was that serviceability was too uncertain, and they wouldn’t provide funding, which left our client high and dry six weeks out from settlement, up for damages and their dreams scotched.

This is where we stepped in – a non-bank solution with a pragmatic approach. We were introduced by a trusted broker from within our network who knew we would be a good fit and would look after his client. As property people, we jumped on a flight and headed to Queensland to meet face-to-face.

Straight away, he could see who we were, what we were about and what we could provide. It showed him we were dedicated – willing to fly out for 24 hours and that we’re different to other private lenders – not hiding behind our spreadsheets and understanding asset value and good investments as property people. We wanted to see the site with our own eyes too, understand the story and bring some comfort to the investor. As service providers, we think it’s important to be prepared to go further.

As a private financier, we are able to act nimbly and strategically. And because we understand the market intrinsically, we could provide a competitive indicative proposal within 48 hours, detailing the loan amount, pricing and terms, and had the offer out within a week with endorsed terms. Better still, this was achieved within his settlement time frame of two to three weeks from signing the letter of offer. We offer pricing and terms to match any other non-bank in the market, with service that can’t be beaten.

The result is that he was able to secure a private solution to help settle the property, within a tight deadline, giving our client the confidence and means to start executing his plan with zero hassle. We like to call it a ‘set-and-forget facility’, which means going forward he will have no ongoing reviews during the 12-month loan term and peace of mind to not have to seek consent or approval every time he wants to do something.

There’s nothing we like more than getting on the ground and finding a solution that simply works. Negotiations, legal and consultant management may have been across states to facilitate, but the guys couldn’t be happier with what we did. They’re rapt, we’re happy, and it’s another example of how a solution is always there if you’re prepared to dig a little deeper.