Case Study:
Professional
Services Group

Our Customer

The customer is an experienced investor, holding a diverse range of commercial and industrial properties. A separate trading business is owned by multiple family members.

Challenges

The customer was struggling to show the ability to raise finance for new and existing properties despite having a relatively low level of gearing, resulting in various separate lenders with different and time-consuming reporting covenants. Rates and fees were also expensive.

Strategy

We helped our customer compile a property schedule that included an assessment of their "WALE" (Weighted Average Lease Expiry) by reviewing all existing property leases, gross income, and recent bank and independent valuation appraisals.

The initial findings were:

Results

Our review identified instances where incorrect data was communicated to credit providers. We demonstrated a more accurate overall financial position and drew attention to several mitigating credit factors.

From a credit perspective, the capacity to service debt was also strong and the interest rates charged were not reflective of that position.

Add Value

• MCP consolidated several lender relationships while negotiating more favourable lending terms and annual interest savings.
• An annual review process was established to enhance debt structure and plan for new property purchases in the future.