Strategic Advisory has been providing clients with strategic planning and financial advice for 12 years. They manage over $20 million in a private loan book. They provide funding solutions for transactions that banks do not offer, such as mezzanine funding for developments, resolving unexpected tax debt, and bridging loans. Interest rates range from 9-12% for first mortgages, 17-22% for second mortgages, and caveats which register an interest behind any mortgage. Examples provided include mezzanine funding for a residential development, refinancing a pub/hotel and paying off tax debt, providing funds to a builder experiencing shortfalls, and a loan to a client for a land subdivision.

2. Suite 2501, Level 25, 520 Oxford Street, Bondi Junction NSW 2022
P 02 9389 1859 F 02 9389 1857
We at Strategic Advisory take pleasure in providing some insight into our business and service
proposition.
For the last twelve years Strategic have been in operation providing our clients with a high standard of
advice and strategic planning towards their finance and property affairs.
Our policy is to undertake in an in-depth analysis of your cash flows and asset position in order to
provide you with sound and responsible guidance towards improving your financial situation and overall
standard of livelihood.
We have been successfully operating a private loan book for the past eight years, of this enterprise the
total funds under management amount to over twenty million dollars.
The business is structured in such a way that a complete awareness of the transaction is provided to
ensure that a successful outcome is eventuated to all parties.
The funds trade from two separate trusts, internally our credit committee consists of two commercial
brokers who have been operating together for duration of the business along with two exceptionally
experienced lawyers.
The operational advantage of our structure advantage is that with most transactions one broker
manages the first mortgage and the other business writer manages the short term loan providing
exceptional understanding and control.

3. Suite 2501, Level 25, 520 Oxford Street, Bondi Junction NSW 2022
P 02 9389 1859 F 02 9389 1857
The major benefit of the funding available from our short term loan book is that we provide a means to
attain funding solutions that the major banks are unable to offer. Our service provides a means to
facilitate the delivery of transactions that would not otherwise be able to proceed.
Examples of proposals that banks will not fund:
 Mezzanine funding for developments
 Resolving unexpected tax debt (all major banks will not provide funds for this with the bank
requesting the client to leave the bank forcing the sale of assets)
 Bridging loan situations
Range of interest rate charged to the client:
 The interest rate is dictated by the overall risk of the deal. If we generally hold a first mortgage
our charge will be 9%- 12%pa, the purpose of the funds will dictate further structuring.
 Registered second mortgages are considered higher risk as you sit behind the second mortgage
we generally charge between 17% - 22%
 Registered caveats: Is a legal conjuncture preventing the sale of a property. This enables us to
register an interest behind any mortgagee. The aim of this type of instrument is to mitigate the
risk posed by an under-realisation from a liquidation of security held by the first mortgage, by
providing a security position over other assets.

4. Suite 2501, Level 25, 520 Oxford Street, Bondi Junction NSW 2022
P 02 9389 1859 F 02 9389 1857
High Density Residential Development
An existing client who has a property portfolio of
$70,000,000 conservatively geared at 65%,
required $3,000,000 in mezzanine funding to start
a residential property development project.
The client did not wish to liquidate any of their
core assets to raise the additional funding, as they
were linked to further developments projects that
would earn considerable profit for the client.
As a result of the funding, the client was able to
proceed with the project which delivered
$17,000,000 profit over 18 months.
Funding Strategy
We concurrently organised the first mortgage with St. George Bank $43,000,000. IN order to provide
these funds the banks required the shortfall to be provided by the client, which was done so through the
mezzanine facility.
To securitise this facility we had taken registered second against two service stations worth $5,000,000
along with a caveat position behind the development and a registered option against a $17,000,000
commercial property that had a $12,000,000 debt against it.
The mezzanine facility was for $3,000,000 at 22%pa over a 29 month term.
Commercial Pub/Hotel Purchase
Refinance of first mortgage of $13,600,000 &
additional funds to clear a tax debt of $2,000,000
which would not have been approved through the
bank. Valuation of the property returned at
$26,000,000 plus trading figures had improved.
Loan 1 $15,600,000, interest paid in arrears
Term 12 month term, LVR 65%, Interest 15%,
Application fee $0. The deal was then refinanced to a
major lender within 12 months, without this facility
the original bank would have liquidated the asset and
the client would have been in a worrying situation.

5. Suite 2501, Level 25, 520 Oxford Street, Bondi Junction NSW 2022
P 02 9389 1859 F 02 9389 1857
Builder Short-fall of Funds to Complete
We had been introduced to a developer
experiencing problems in raising finance with their
bank. Concurrently they started construction and
had been $400,000 in debt.
We assessed the first mortgage and concluded that
it would take 3 month to organise.
Security was provided through a caveat over the
client home. Facility $500,000 from 3 months
charging 3% per month. The client completed the
project 18 months later making a $3m profit against
the project.
Regional Land Sub-division
Client could not attain traditional funding due to
the nature of the security. We were able to
provide them a solution under the following
conditions: First mortgage of $6,000,000 against
regional properties and a caveat over their
home.
Loan 1 $2,500,000 @ 8%pa
Loan 2 $3,500,000 @ 15%pa
Interest capitalization 12 months
12 month term
Application fee 3.5%
The $3,500,000 covered a refinance of a National Australia Bank facility. The residual facility was
structured to be released in stages: $1,700,000 covered progress payments for the completion of the
civil works and $800,000 allowing for interest capitalization and contingency.