CRE Property Acquisition
Purchase of commercial and non-coded residential investment properties: retail, industrial, office and specialised securities
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We provide borrowers with loans for CRE property acquisition,
debt refinance and restructure and leverage up for commercial purposes
Loan criteria and borrowing guide
Borrower purpose
- Commercial property investment – re-finance, acquisition, cash out and ATO debt.
- Residual stock loans – office, retail, commercial and residential security preferred.
- Non-NCCP residential secured loans.
- SMSF acquisition or refinance loans.
Acceptable borrower security
- Commercial, retail, office, specialised and industrial or non-coded residential investment properties located in Australian capital cities and major towns.
- Owner occupier or investment property, mixed use.
- No construction loans.
- Limited recourse considered – if low LVR < 50% and 2 times debt service cover ratio (DSCR) is proven.
Serviceability requirements
- DSCR calculation is 1.20x (non-sensitised) all sources net income divided by all group actual external debt service requirement.
- Property stand-alone net rental income can be supported by group cash flow including PAYG to prove up DSCR on an “all sources/all debt basis”.
Features
- Arch Finance underwrites credit blemishes including repayment of ATO debt.
- Generally, no ongoing requirement for borrower to furnish annual financial accounts and no bank style loan monitoring or reporting conditions.
- Past credit issues mitigated through loan structuring and commercial underwriting process.
- Lease up risk accepted on short WALE transactions.
Arch Base Rate
The monthly Arch Finance lending base rate is determined by reference to the relevant 90-day bank bill rate, as published on asx.com.au plus a margin to cover incremental capital adequacy, funding and administration costs. The applicable rate as at July 2024 is 4.50% p.a.
Funding process
Our origination and risk team have deep market experience and analyse the underlying merits case be case to structure a lending solution that works for the borrower. Our custom solutions offer certainty of approval and delivery, typically in a 3 to 4 week settlement period.
Loan Categories
Debt Refinance and Restructure
Refinance and restructure often involving refinancing of multiple lenders across multiple security properties
Find Out MoreLeverage Up for Commercial Purposes
Cash out for business purposes including acquisitions, purchase of stock, relocation, and office fit out
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