Case Study: Property

Client & Objective:
A hospitality business operator with in excess of 20 specialised businesses interests and a commercial and residential property investment portfolio with approximately $8m in total combined commercial lending limits. Due to the size and complexity of both the business group and the property investment group (comprising over 40 individual properties), the client had reached a borrowing maximum with their incumbent bank. Despite significant amounts of equity in the property portfolio, a series of complexities ranging from asset type to debt servicing capacity were prohibiting them from continuing to grow their property interests.

Requirement:
A total reinvention of the borrowing structure was required to simplify the client’s overall position from 14 separate loans to 1 sole facility. The former structure was unnecessarily onerous and complicated but was also severely neglected by the incumbent bank for these reasons. A detailed finance strategy was prepared in conjunction with the client and their accountant. This required a multitude of structural changes within the group as well as a strategy to unlock further capacity for growth. The resultant requirement was a single consolidated multi-borrower finance limit with both flexibility and clear assessment parameters.

Solution:
HT Capital was able to present and negotiate a highly complex restructure for the client in close conjunction with their accounting and legal partners.
The end solution involved a single consolidated group facility limit which has subsequently enabled the client to scale their lending levels from $8m to $18m within 18 months, and with a major bank. Conceptualisation of the strategy and ability to manage the detail of the transition to a granular level were crucial to broader success.