Defensive Opportunity

Compass Centre

Bankstown, New South Wales

Term 12 months

Property Value $45 million (As Is Valuation)

Loan Type First mortgage bridging facility

Sector Retail

Project Highlights
  • Initial LVR of 33%
  • Loan facility $15m
  • Strong risk adjusted return

The loan facility for this older shopping centre and office building was structured as a typical first mortgage bank facility on a conservative loan-to-value ratio. Low leverage made Compass Centre an appealing loan candidate for White & Partners.

The developer was a syndicate of Chinese investors who had borrowed through White & Partners on three prior projects, starting with a major residential development, The Place in Ashfield. Following the successful partnership on the Ashfield development, the entire portfolio for this syndicate was brought to White & Partners, who were not the cheapest lenders but added value in their ability to deliver projects and experience in managing contracts, council negotiations and knowledge of local laws.

Even after the repayment, White & Partners continue to support the development with advisory. White & Partners actively worked with the borrower to monitor the leasing strategy and any potential development. At loan origination, all remaining tenants were converted to monthly holdovers creating flexibility for the developer to pursue development in the near term.

Compass Centre sits on 8,173sqm of land adjacent to the Bankstown train station. A development application was lodged for 471 apartments, 5,020sqm of retail, 2,034sqm of commercial and 794 car parks.