An experienced Central Otago developer had converted a motel in Alexandra into individually titled residential units. The renovation work was to a very high standard — Richard Carnachan Valuations assessed the completed asset at $4,500,000 +GST, confirming the uplift the developer had created. The problem was that LINZ had not yet issued titles. Without those titles, conventional lenders would not move.

Atlas structured a two-part solution. A first mortgage at 70% LVR was arranged to activate on issue of the unit titles — giving the developer certainty that capital would be in place as soon as LINZ completed the process. Alongside this, a second mortgage was arranged to cover the developer's wash-up costs, ensuring the project could be fully resolved without a funding gap at either end.

The blended cost of funds came in sub 9% — competitive for a transaction involving two mortgage positions and a title transition. Working alongside CM Law and Invest Midlands, Atlas assembled the legal and advisory framework that allowed the lender to move with confidence despite the LINZ timing.

Outcomes achieved:

• $4,500,000 +GST valuation confirmed by Richard Carnachan Valuations

• 70% first mortgage finance arranged, triggered on issue of unit titles

• Second mortgage arranged to cover developer wash-up costs

• Blended cost of funds achieved sub 9%

• Experienced developer able to realise value without waiting on LINZ timeline

Titles were always coming — the job was making sure the finance didn't make the developer wait.