Specialised property loans
Finance for property that most lenders treat as specialised. Childcare centres, service stations, medical centres, self storage, hotels and pubs are valued differently to standard commercial property and assessed by specialist credit teams. We've assessed specialised securities from the lender's side, so we know what the credit teams look for.
Common uses
Buying
Purchase a specialised property as an investment or for your own business.
Freehold going concern
Buy the property and the business that trades from it together, such as a pub or a childcare centre you'll run.
Refinancing
Move a loan when a review is coming up or your current lender's appetite for the asset has changed.
Equity release
Access equity in a specialised property for your next purchase or for upgrades.
How credit teams read specialised property
Specialised property is harder to sell or lease again if something goes wrong so lenders assess it more carefully than a standard shop or office. Each asset type has its own checklist. These are the main things credit looks at for each one we arrange.
Childcare centres
Most centres are leased to an operator so credit looks hard at the operator and the lease. That means the operator's track record, the length of the lease, the number of licensed places and how the centre is rated under the National Quality Standard. For owner operators lenders also look at occupancy and the centre's trading figures. Because the building is purpose built most lenders apply a lower LVR than for a standard commercial property.
Service stations
A service station leased to a major fuel brand on a long lease can be strong security. Credit focuses on the tenant, the lease and the environmental side. Lenders usually want to know the condition of the underground fuel tanks and who carries the cost of any contamination. An environmental report is often part of the process.
Medical centres
Lenders generally like medical property because demand is steady. For an investment medical centre, credit looks at the tenant mix such as GPs, specialists, pathology and pharmacy and how long each lease runs. For a practice buying its own premises, the practice's earnings matter most. Some lenders have dedicated policies for medical professionals which can mean better terms.
Self storage
Most self storage is valued on how it trades rather than on a single lease. Credit looks at occupancy, the rates per unit, the operating costs and how long the facility has been trading at its current level. A newer facility that is still filling up is harder to fund than an established one, so the timing of a refinance can matter.
Hotels
Accommodation hotels are valued mostly on what they earn. Credit looks at occupancy, average room rates, the operator's experience and the condition of the building and fitout. Lenders are cautious with hotels so expect a lower LVR and close attention to the trading history and any upgrades the property needs.
Pubs
A pub is usually bought or refinanced as a freehold going concern so the business and the property are assessed together. Credit looks at the liquor licence, the operator's experience and how revenue splits between bar, food, accommodation and gaming. Some lenders cap how much gaming income they'll rely on, so matching the venue to the right lender matters.
Four steps, one point of contact
Tell us the plan
What you are trying to do and the approximate amount.
Get a straight answer
Whether it is fundable and which lenders suit it.
Compare the options
Rates, structure, fees and conditions side by side.
Through to settlement
Application prepared, submitted and managed.
Why specialised property deals get declined and what to fix first
From the credit side these are the problems that come up most often with specialised property.
- The wrong lender
Many lenders don't take specialised security at all and of those that do, each has its own limits. Sending the deal to a lender without the appetite wastes time and leaves an enquiry on your credit file.
- Thin trading records
For trading assets like pubs, hotels and self storage lenders need clear figures. Have at least two years of accounts and current management figures ready.
- Lease gaps
A short lease, an option that hasn't been exercised or an unclear make good clause can reduce what a lender will advance. Where possible, sort these out before you apply.
- Environmental unknowns
On a service station an unanswered question about the tanks or contamination can stall a deal. Get the environmental information early.
- Not enough contribution
Lower LVRs on specialised assets mean a bigger deposit or extra security. Plan for that before you sign a contract.
What counts as specialised property?
Property built for one main use that is harder to repurpose, such as childcare centres, service stations, hotels and pubs. Lenders assess it under their own policies and usually lend a lower share of the value than for a standard office or shop.
How much deposit will I need?
It depends on the asset, the lease or trading figures and the lender. As a guide, expect a deposit of around 25% to 40%. We'll give you a realistic figure early.
Can I buy the business and the property together?
Yes. Buying a pub or a childcare centre as a freehold going concern is common. Lenders assess the business and the property together. Business loans →
Can my SMSF buy a specialised property?
Sometimes. An SMSF can borrow to buy business real property such as a medical centre leased at market rent. Trading assets like pubs and hotels are usually harder. Your accountant or adviser should confirm what suits your fund. SMSF loans →
Do you only work with the major banks?
No. Specialised property often suits non-bank lenders as well as the banks that have specialist teams. We'll compare both for you.
Tell us what you need.
No documents needed to start. Call (02) 7822 0255 or 0481 877 727, or answer a few quick questions.