Defensive Opportunity

Compass Centre

Bankstown, New South Wales

Origination Date December 2017

Term 12 months

Property Purchase Price $45 million

Loan Facility $15 million

Credit Metrics
  • Loan to Value Ratio (LVR): 33%

Loan Type First Mortgage Land Loan

Asset Class Retail

Project Highlights
  • Shopping centre situated on 8,173 sqm adjacent to the Bankstown train station
  • Syndicate of Chinese developers
  • DA on property lodged for 471 apartments, 5,020 sqm of retail, 2,034 sqm of commercial and 794 carparks

White & Partners has provided a 12 month first mortgage bridging loan on the Compass Centre in the Sydney suburb of Bankstown. Compass Centre is an older style shopping centre and office building situated on 8,173 sqm of land adjacent to the Bankstown train station. A Development Application (DA) has been lodged for 471 apartments, 5,020 sqm of retail, 2,034 sqm of commercial and 794 carparks.

Bankstown is located in Sydney’s south west, approximately 19 km from the Sydney CBD. Demand for apartments in Bankstown stems from its abundance of amenities, schools and being well-serviced by public transport. Bankstown is undergoing major urban renewal with a transition to higher density housing in the city centre. The train station will also benefit from a major upgrade as part of the New South Wales Government’s $12 billion metro rail project.

At loan origination, all remaining tenants have been converted to monthly holdovers. The short term nature of the leases creates flexibility for the developer to pursue a potential development in the near term. The borrower is a syndicate of Chinese investors who have experience delivering real estate projects in China.

The loan facility was structured as a typical first mortgage bank facility on a conservative Loan to Value Ratio (LVR). In addition to the first mortgage over the property, personal guarantees have been obtained from all directors. The low leverage underpins Compass Centre’s appeal as a loan candidate.

White & Partners is actively working with the borrower to monitor the current leasing strategy and any potential development.