Two properties situated in CBD – one heritage-listed building and another a floor of an older building in Chinatown.
Background
Over a 10 years period, the borrower had regularly defaulted on their loan obligations across four different financiers. During that period we were appointed as receivers by each of the financiers.
For the first three appointments, we successfully were able to refinance the loan to the financiers and find an alternative lender. Each financier was able to deal with the outstanding strata fees, council rates and property taxes. The borrower seemed to be oblivious to their obligations to pay these expenses and seem unwilling or unable to deal with the loan commitments during some or all these different lenders. Each time we were appointed we encountered significant disruption by the borrower.
How did we assist
During the various receivership appointments, the following was undertaken:
- Took control of the properties and commenced collecting the rent from tenants.
- Dealt with borrowers their behaviours during the process to ensure it did not impact the outcome of either refinance or sale;
- Commenced a sale process and undertook valuations
- On the final receivership appointment, we marketed the property for sale and achieved a price above valuation;
- The final financier also successfully recovered their debt and expenses in full
Outcome
All financiers were paid out in full. The properties were sold to new investors. The heritage-listed building is undergoing a major refurbishment which will see it open its doors in 2023.
