MORPHETVALE SA - MORTGAGEE CONSULTANCY
Retail shopping centre expansion – Adelaide Southern suburbs
Loss and possible fraud scenario. The leases presented had erroneous clauses enabling the parties to vacate at any time without compensation not picked up by the lawyers. The Lender’s Loan Facility was facing a 20%+ loss of input capital if sold vacant, as the original building had been demolished. The selling agents only solution was a mortgagee sale with significant losses to both the builder and financier.
ACMF prepared a feasibility with the builder (who stood to loose circa $500k+ due to site preparation and steel fabrication work carried out). An incentivised Leasing campaign generated enough leasing cash flow to allow the lender to take over the project, fund the completion resulting in a substantial gain to the lender.
Majority Leased quickly Major long term tenancies resulted. The Lender received full payment of capital plus interest capitalised and all fees were paid including ACMF profit share incentive program in the upside.
Project Completion allowed Developer and Builder to repay all debts with return of input capital.