Asset Lend Commercial Loans in Sydney

Asset lend exists for Sydney's transitional commercial market

Sydney's commercial market generates a constant flow of transactions outside bank policy: vacant assets bought for redevelopment, sites being repositioned, distressed sales requiring 14-day settlements, GST-recovery purchases by buyers without two years of returns, foreign investor structures, complex trust arrangements. Asset lend funds these deals by underwriting to the property's stand-alone resale value — typically at 55–65% LVR — without traditional serviceability assessment.

Sydney's resale liquidity supports the structure

Asset lend lenders rely on being able to recover their loan through sale if the borrower defaults. Sydney commercial assets generally clear quickly — sub-$5M industrial typically transacts within 60–120 days, inner-ring strata office within 90–180 days, and even harder-to-place secondary retail clears within 6–12 months at appropriately discounted pricing. This resale depth is what allows non-bank asset lenders to fund deals other lenders cannot.

Pricing reflects the risk transfer

Asset lend rates currently sit at 8.50–11.50% for senior facilities in Sydney depending on asset, LVR and term. This is materially above full doc bank rates (5.5–6.75%) but is the cost of a deal funding that would not otherwise settle. Most asset lend facilities are structured as 12–36 month terms with interest-only payments, designed to be refinanced once the borrower can present clean financials, secure tenanting, or complete a planned reposition.

$3.2M vacant industrial, Auburn

Investor purchasing a vacant 1,400sqm industrial unit at 12% below replacement cost with a 4-week settlement. Bank funding impossible within timeframe and on vacant possession. Funded at 60% LVR ($1.92M) at 9.25% IO on 18-month term. Borrower secured a 5-year lease 90 days post-settlement and refinanced to bank at 6.85% in month 11. Net asset-lend cost over hold: $158k. Equity uplift from below-replacement purchase: $510k.

$5.5M development site, Marrickville

Developer purchasing a DA-approved mixed-use site, equity tied up in two other projects. Bridging needed for 9 months until pre-sale launch and senior development funding. Asset lend funded at 55% LVR ($3.0M) at 9.75% IO, with capitalised interest. Refinanced into senior development debt at month 8.

$1.8M strata office, Pyrmont

Borrower with a recent bankruptcy discharge purchasing for own-occupation. Outside bank policy on credit; lease income unavailable as owner-occupier. Asset lend at 55% LVR ($990k) at 10.25%, 24-month term. Refinanced to a low doc lender at month 22 once business financials had been re-established. Net asset-lend cost: roughly $90k over the hold — a calculated cost of accessing the property at the right time.