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Case Studies

1. Acquisition and development finance for a portfolio of showrooms on a sale and leaseback agreement

Cohenca Consulting acted for a syndicator in the initial acquisition and future development of a portfolio (in WA and NSW) of showrooms to a national tenant on a sale and leaseback basis, with an end value of $66m.

Our role involved:

  • Assisting with preparation of an Information Memorandum for investors
  • Working with lawyers to finalise the Syndicate Trust Deed
  • Working with lawyers and the tenant in the negotiation of a Development Agreement in respect of the future development of the properties
  • Arranging a $34m multi option facility for acquisition and construction turnkey finance
  • Negotiating all security documents with the bank's lawyers
  • Satisfying all conditions precedent prior to financial close

2. Project financing for $12 million mixed use development

Cohenca Consulting acted for a development management company which proposed the construction of a mixed use residential and commercial development in Perth's Western suburbs, with an end value of approximately $12m.

We assisted by:

  • Introducing private investors into the investor syndicate
  • Assisting with strategy for the site acquisition
  • Liaising with lawyers on all aspects of establishing the syndicate
  • Arranging acquisition and development finance
  • Sitting on the Project Control Group which directed the Development Manager in all strategic aspects of the project

3. $6 million debt for two development projects

Cohenca Consulting acted for a developer in raising junior debt of $6m against two projects.

Our role involved:

  • Originating the transaction
  • Preparing a comprehensive Information Memorandum for presentation to the lender
  • Negotiating the term sheet prior to credit approval
  • Managing the pre-settlement process including all legal documentation and the satisfaction of all conditions precedent

4. Circa $90m senior and junior debt development finance facility

Cohenca Consulting acted for a developer in raising senior and junior debt of circa $90m against a $150m residential property development in metropolitan Perth.

Our role involved:

  • Originating the transaction
  • Preparing a comprehensive Information Memorandum for presentation to the lender
  • Negotiating the term sheet prior to credit approval
  • Ensuring all presales were properly documented, qualifying and accurately reflected in the sales schedule
  • Managing all aspects of the relationship and interaction between the Senior and Junior lenders
  • Managing the pre-settlement process including all legal documentation and the satisfaction of all conditions precedent

5. Refinance of senior debt facilities on behalf of a public company

Cohenca Consulting assisted a public company with its strategy for the refinance of two separate senior debt facilities totalling $150m+.

Our role involved:

  • Reviewing the proposed refinancing strategy and suggesting an alternative strategy that helped the borrower better understand its options with other lenders and the likely view its bank would take
  • Preparing a term sheet outlining the preferred debt structure being sought
  • Reviewing and significantly reworking the Debt Renegotiation Information Memorandum

6. Distressed Borrower Representation

Cohenca Consulting acted for a developer that undertook a mixed use residential, office and retail development, borrowing $200m+ from a syndicate of banks. The developer encountered cost overruns and significant purchaser defaults that resulted in the bank appointing an investigative accountant and transferring the file to its "bad bank".

We assisted by:

  • Assuming responsibility for all contact with the banks
  • Devising a reporting regime for acceptance by the banks and ensuring that reporting was met
  • Reviewing investigating accountant's report and ensuring that various inaccuracies were corrected
  • Negotiating with various purchasers to ensure they settled their purchases
  • Attending meetings with ATO

7. Review of a regional bank’s existing property finance business

Cohenca Consulting was approached by a regional bank to undertake a review of its existing commercial property finance business and the future opportunities to develop and grow the business.

This involved:

  • Reviewing and analysing the composition of the existing portfolio including sector, pricing, distribution etc
  • Interviewing staff with involvement with the business unit
  • Interviewing customers
  • Assessing the existing policies and procedures
  • Analysing the opportunities/market niche/s that existed for the business
  • Preparing a report for the Board of the bank identifying the strategy and key actions required to develop a sustainable business

8. Syndicated mezzanine debt facility to finance acquisition of mixed use retail centre

Cohenca Consulting acted for an Australian investment bank which provided a syndicated mezzanine debt facility (jointly with a US investment bank) of $42.5m to finance the borrower's acquisition of a 50% interest in a mixed use retail and bulky goods centre in Melbourne with a total purchase price of $300m+.

We assisted by:

  • Reviewing financial modelling provided by the borrower
  • Drafting Information Memorandum for Investment Committee approval
  • Negotiating (in conjunction with US Investment Bank) all security documents including Intercreditor Agreement with the senior lender
  • Ensuring all conditions precedent to financial close were satisfied

9. Lending facility for small owner-builder with limited servicing capacity

Cohenca Consulting assisted a small owner-builder that wished to redevelop an existing house in the Western suburbs of Perth by adding a significant rear extension. No bank was prepared to finance the transaction as there was no "presale" and limited servicing capacity in respect of the final debt.

We originated a:

  • $1.6m+ first mortgage facility from a private lender
  • $0.3m+ second mortgage facility from a separate private lender (acting for the private lender)
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