Case Study: Medical/Health

Client & Objective:
A retired medical professional looking to expand financial interests into property development through construction of a $10m mixed-use commercial and residential asset.
The client was issued indicative terms by two mainstream banks prior to being introduced to HT Capital. On each occasion, the terms were withdrawn or materially varied late in the credit process. At the risk of severe project delays, a commercial decision was made by the client to commence construction works in absence of an unconditional credit approval. At the time of HT Capital being introduced to the client, and the earlier false perceptions of credit appetite, the construction was 30% complete and liquid financial resources eroded.

Requirement:
Approximately $9m in commercial finance limits to facility the 100% finance of the residual development costs. Successful implementation of the strategy required an incoming financier to participate in the development part-way through completion and under severe time pressure. An ability to understand the technical aspects of the construction, negotiate with the builder to manage expectations, and absolute speed and responsiveness were all also critically important factors.

Solution:
HT Capital presented a detailed finance proposal which mitigated all the key risks that would otherwise be encountered by the bank in participating with finance at the prescribed point in time. Ability to anticipate and address these points in advance enabled us to deliver a streamlined and simplified application process which significantly compressed the standard processing timeframes. A detailed and comprehensive submission was also critical to overall success as it provided the lender with all of the required information upfront, thereby enabling the transaction to settle with a major bank.