Takeout Loan Facilities are secured on completed Development Projects where a portion of the product has yet to be sold and settled.
Takeout Loan Facilities enables any Developer to refinance the current Construction or Development Lender upon completion of the Development Project on all the unsold apartments and/or townhouses to enable there orderly sale and settlement over “say” the next 2-years.
Takeout Loans secured through Pioneer Capital Finance are very commercial in that Lenders seek to work with you to achieve an orderly sell-down of your completed Development Project, thereby maximising your return.
Takeout Loans remove any and all pressures from Construction and Development
Lenders who are increasing nervous about the marketplace and who may act irrationally and sell-down your Development Project as mortgagee-in- possession.
One thing you must never forget as a Borrower, the mortgagee when in a flight to cash, will leave you with nothing!
Takeout Loans can be organised prior to completion of your Development Project so as to see an orderly transition and exit of your Construction/Development Lender while never putting your sales strategy and marketing at risk. Such a transition should enable you to maximise your returns on your Development Project.
An example of Takeout Loan delivered to date was for a completed Development Project in Auburn that saw the Developer refinance and sell-down one-third of the Development Project, discharging the Takeout Loan over the 2-year Term of the Loan Facility.
It’s this experience Pioneer Capital Finance brings to each transaction that will make the difference to you.