commercial loan - foreign investor

Discussion in 'Loans & Mortgage Brokers' started by dboy_tomato, 22nd Oct, 2016.

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  1. dboy_tomato

    dboy_tomato Well-Known Member

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    23rd Jun, 2015
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    Location:
    Sydney
    Hi everyone,

    I have exchanged for a Commercial IP recently and is due to settle soon.

    I have purchased this with a foreign investor whom is chipping in some deposit ( less than 50%) but are not a borrower.

    My broker and the actual bank's (big 4) banker said on numerous occassions that my loan will be fine as long as the foreign investor is a shareholder of the holding company and not a director.

    My settlement is due soon and the banker has delayed giving me the formal approval a number of times.

    I am just concerned that the loan may bounce. the valuation was done and it came thru with flying colours.i just dont understand the delay

    i have around 4 weeks to go. just in the worst case scenario, is there enough time for me to go to another lender?

    many thanks
    Dboy
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    With a foreign shareholder has the company considered the Foreign Acquisitions and Takeovers Act? This is what the banks will be worried about.

    You might have to restructure
     
  3. Scott No Mates

    Scott No Mates Well-Known Member

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    Has FIRB approval been sought?
     
  4. dboy_tomato

    dboy_tomato Well-Known Member

    Joined:
    23rd Jun, 2015
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    Location:
    Sydney
    Thanks Terry, is the Foreign Acqusition and Takeover Act governed by FIRB?

    If so, there we have consulted FIRB and they are fine with our transaction. My solicitor has consulted them and they are ok.
     
    Terry_w likes this.
  5. dboy_tomato

    dboy_tomato Well-Known Member

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    Sydney
    Yes, not officially (ie, in writing) but the policy clearly states that for commercial acquisition under $252million does not need FIRB approval.

    Request Rejected
     
    Scott No Mates likes this.
  6. Corey Batt

    Corey Batt Well-Known Member

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    Adelaide, SA
    Hard to say whether your lender in particular will accept it as we don't have the specific details - but in general it is definitely possible to have a joint commercial purchase with a foreign investor financed. Timing in commercial is long, drawn out and fraught with delays, so you may find they're just dithering and it's not a sign that there's anything specifically wrong with your loan application.
     
    dboy_tomato and Colin Rice like this.

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