At Viking Capital we do "The Impossible" …. and all for Very Little !!!


16 Dempsey Street Annerley, QLD

How do you deal with COVID-19 timed, 95% completed, multi-million dollar, upmarket, inner-city townhouse development with no strata titles, and a breakdown in the relationship between the Managed Mortgage Fund, (who funded the construction), and an outspoken European Owner/Builder/Developer? i.e. a deal which has well and truly turned pear-shaped !!

Then, just when you thought the deal was messy enough, why not throw in:

  • an unwanted and painful, and all time comsuming, Commercial Arrangement with the former Landowners?

  • a delinquent loan agreement with an on-going default term of 12 months plus tens of thousands of dollars in unpaid legal costs & penalty interest,

  • a protracted, drawn-out Supreme Court Appeal & pending Damages Action

  • and lastly, a highly uncooperative and most unresponsive local Council?

ENTER

Viking Capital Group, who specialise in sorting out other peoples' messes and who have the 'magic touch' in the successful management of deals gone wrong.

So, you say "This deal is Done and Dusted and all but Unrepairable" but at Viking, we say, "Ha, its just another day at the office for us", as we literally took the Bull by its horns and sorted out this huge debacle by arranging a circa $2.54M bridging loan facility for the Developer, to pay-out the existing mortgage fund, and to get the original project back on track to obtain strata-title … and all this for a meagre cost of 13.5% per annum all inclusive.

In addition to obtaining a pre-brief on this deal, we also completed the following;

  • We negotiated initially with a privately owned, Self-Managed Super Fund, to provide the required Funding Line and arranged sufficient monies to cover all loan costs, outstanding planning works, pre-paid interest and legal costs;

  • We fully briefed & arranged an 'In One Line', and an 'On Completion' Valuation and negotiated with the Lender's nominated Valuer until the required valuation figure could be provided;

  • We negotiated with the Developer and former Landowners, and both their lawyers, to help affect a workable restructure of their previous deal to allow the former landowners to be 'released' from both previous, and also future loan guarantees, and for an assignment of the associated Landholding Trusts;

  • We reviewed all relevant Town-Planning applications and supporting materials made by the Managed Fund on behalf of in-coming new Lender, in order to meet the new Lender's strict loan conditions;

  • We managed a pro-longed truce between the MD of the Managed Mortgage Fund, and the Developer, in regards to the refinancing of the outstanding construction loan, including the facilitation of a significant discount to the face value of the outstanding mortgage for the Developer, the assignment of planning works undertaken by the Managed Mortgage Fund, and we also stage managed the countdown to the loan settlement, in order to assist the Managed Mortgage Fund, and their lawyers, with the ultimate mortgage discharge.

Take a deep breath everyone, this is now sorted ! This bridging loan, as arranged by Viking, has just recently settled and we are more than happy to report that all parties have now moved on to bigger and better things, and that we have subsequently been paid. And what's more, because one of Viking's major clients was involved, we did all this for a flat cost of 1%, plus GST, payable by the Developer.

All things considered, I would have thought that nobody, and I mean nobody, could argue that Viking's services were not the penultimate value for money for all concerned? ... notwithstanding that the On Completion Value of the Townhouses will increase around $1M when the strata-titles issue for the Developer, the Managed Fund has the bulk of its money back and has now avoided further litigation, and likely Mortgagee in Possession Action, and/or the appointment of a Receiver Manager, whilst the former landowners have walked away 'free and clear' of all previous and future liabilities under guarantee.

At Viking Capital we go that extra few hundred miles to make sure we get the job done. Why not call us today if you require specialised advice for complicated mortgage finance situations.

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