Chifley Securities has announced the completion of a $25 million refinancing arrangement put together by a receiver.
The non-bank lender and commercial finance specialist entered the third-party channel last month with an initial lending pool of $480 million.
Chifley said its “first major deal” was arranged by Jamieson Louttit of Jamieson Louttit & Associates, who was acting for charitable trust Rosewood Research.
Rosewood fell into receivership following legal action and a decision by Rosewood’s bank to then withdraw financial support, according to Chifley.
The refinancing of the debt is secured against two major commercial buildings in the Sydney suburb of North Ryde, one of which is leased to 3M in a long-term lease, Chifley said.
Mr Louttit said he turned to Chifley because Rosewood was having difficulty in gaining traditional bank refinancing.
“Chifley quickly assessed the position and determined that with the security of the prime property assets and future profitability of Rosewood, it could step up to the plate, which has resulted in creditors being paid 100 cents in the dollar and the future financial support to the charity ensured,” he said.
Chifley director Dominic Lambrinos said the non-bank lender doesn’t have the constraints of the major banks and so can work with receivers to ensure a great result for all parties.
Brokers can receive “attractive commissions” for bringing deals to Chifley, the non-bank said, while financing costs will range from 8.5 per cent to 12 per cent a year.
8 December 2014