Specialised Asset Lending

Providing development funding for specialised assets, such as childcare facilities, is not a straightforward process and has, unfortunately, cost childcare developers dearly. The team at TierONE Capital has the experience and expertise to work through the myriad complexities with borrowers and are pleased to settle another construction loan facility with an experienced developer and childcare operator in the Sydney growth suburb of Middleton Grange.

The project comprises a 60-place childcare centre, including a 17-space carpark, and will be configured with all of the standard amenities required of a childcare facility, purpose built to accommodate children between the ages of 0 to 5 years old.

A boost in the form of government funding, in addition to federal infrastructure statistics showing that an additional 3000 childcare centres were needed over the next 10 years to cope with increased demand as more women look to return to the workforce, has strengthened the sector as a viable option for investment.

The important factor when lending against specialised assets is to assess, mitigate and monitor risks, which is where TierONE Capital’s expertise resonates. Our experience in assessing childcare centre opportunities extends from the inner Melbourne suburb of South Melbourne to the coastal town of Kiama, in New South Wales.

In his time as managing director of Folkestone, TierONE Capital CEO, Greg Paramor, specialised in childcare and healthcare investment syndicates making him a leading expert in the field. Greg’s ‘hands on’ approach and oversight of each loan facility ensures the very best solutions and opportunities are rolled out to both borrowers and investors alike.

Above all, it’s imperative to have a viable exit from the loan facility. Typically, in the case of a childcare facility, this would be either the refinance of the completed property by term end or the sale of the childcare freehold. A strong exit plan gives comfort to the lender and any potential investors.

In the case of the Middleton Grange childcare facility, investors are provided with even further reassurance given an experienced quantity surveyor and proven quality builder have been engaged to round out the team of accomplished professionals who will manage the project through to completion. We look forward to working with all parties.

TierONE Capital is actively sourcing new funding opportunities. Funding queries can be directed to Malcolm Ferdinands on 0413 980 000 or malcolm@tieronecapital.com.au.

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