Peakhurst Inn

New South Wales

Term 18 months

Project Value $43.85 million (on completion valuation)

Loan Facility $26 million

Loan Type First mortgage land & construction

Sector Pub/Hotel

Project Highlights
  • LVR of 61%, LTCR 63%
  • Construction loan for pub expansion
  • Known borrower, previous partnerships in sector
  • Alternative sector for non-bank lenders

As experienced pub owners, White & Partners has relevant expertise associated with the hotel and pubs asset class that many other lenders do not. Where banks are adverse to the trade up risk, for instance, White & Partners can tolerate. And while White & Partners has traditionally focused on land banks, development and investment loans, alternative sub-sectors have become more common clients. Many publicans, in particular, have sought term sheets to refinance away from their mainstream lenders due to restrictive covenants.

This construction loan funded a pub expansion project at the Peakhurst Inn. The expansion included the latest refurbishment of the 1960s hotel into a modern hospitality venue offering food, bar and gaming and extension of the two-storey freestanding hotel building.

The borrower, is a well established operator with 10 hotels under ownership and management. White & Partners had been involved with 6 of their hotels in the preceding 4 years.
The hotel remained operational during the development which included demolition of the rear half of the existing hotel, creation of a new gaming room, new TAB and sports lounge areas, new male and female amenities, and renovations to 11 accommodation rooms as part of the construction.