Australia’s largest real estate group.

BACKGROUND

Growing real estate business with four partners who had an opportunity to purchase a commercial premises. Each partner had high personal mortgages and the business had just taken an additional loan to help fund the purchase of a rent roll. The debt levels were almost at their limits and it would have proved difficult and costly to raise additional capital from the bank to fund the purchase.

FBZ OBJECTIVES

FBZ put an SMSF structured finance package together which allowed us to use the capital from our super fund accounts to fund 50% of the purchase price and only borrow 50% from the bank.

KEY RESULTS

We now have an asset that is positively geared and self-funding. We pay no tax in the structure which owns the property and receive annual profit distributions in our SMSFs. We have the option to use our super contributions from the business to increase the equity, reduce the debt in the investment and increase the annual income our SMSFs receive which will help fund our retirement.