This article is from the Australian Property Journal archive
TONY Pitt’s 360 Capital Group has underwritten a new $26.2 million senior loan facilities secured by 35 first mortgages over 35 homes in the growth corridor of north-western Sydney.
The loan facility was underwritten within the 360 Capital Private Credit Fund (PCF) and secured by 35 individual registered first mortgages over 35 completed four- and five-bedroom homes.
The news comes less than a week after 360 Capital REIT announced a 11.5% valuation five on its three directly owned assets, with the assets, acquired from Irongate for $256.7 million in March of 2022, and now worth a combined $201.4 million.
The 12-month loan term is at an interest rate margin of 6.6% above three-month BBSW with a floor of 11.0% if rates fall.
The loan also has a LVR covenant of 70% to be reduced to 55% before any cash proceeds from the sales are released to the borrower.
The borrower has also provided other security including personal and general security agreements.
The loan was funded from existing cash, with 360 Capital Group’s cash at approximately $110 million as at 30 June 2024.
Back in February, the fund undertook an entitlement offer in February raising $25.5 million to reduce debt, “in anticipation of the continuing deterioration of the commercial real estate market”.
After undertaking a simplification strategy over the FY23 period, which resulted in a statutory net loss of $20.8 million, down 165.6% from a profit of $31.7 million in FY22.
