First Mortgage Private Loan – Randwick, Sydney

Assurity Capital recently settled a first mortgage private loan of $4,000,000 over a substantial commercial accommodation asset in Randwick, Sydney. With an estimated value of approximately $20 million and leverage of only around 20%, this transaction demonstrates the strength of asset-based private lending when a borrower needs speed, flexibility, and a practical funding solution.

Due to the extremely low gearing and strong security profile, Assurity Capital was able to waive a full valuation, instead relying on the Valuer General’s land value assessment and a real estate agent’s market opinion—allowing faster approval and lower upfront costs.

1. A Large-Scale Commercial Accommodation Facility in Randwick

The asset is one of the largest hostel-style properties in the Coogee / Randwick / UNSW / Prince of Wales Hospital precinct, featuring:

• Approx. 99 beds and around 40 rooms

• 14 lock-up garages plus 15 additional parking spots and more on-site parking

• 10 fully equipped kitchens

• 17 bathrooms, including 17 toilets and 25 showers

• In-ground swimming pool

• Large rooftop terrace and ocean-view sundeck with million-dollar views

• Licensed to sell food and drinks

• Multiple additional revenue sources, including:

  
  

  • Laundromat

  • Vending machines

  • Coin-operated sauna

  • Security lockers

The facility currently operates with daily rates around $50 per bed, with significantly higher returns during peak seasons such as Christmas and New Year.

With its scale, zoning, and existing operation, the property serves a wide range of potential uses (STCA), including:

• Boutique hotel or motel

• Medical or consulting suites

• Private hospital or health clinic

• Crisis, welfare, or community accommodation

• Refuge, charitable, or NFP uses

• Diplomatic or consular guest accommodation

• Drug & alcohol rehabilitation, wellness or recovery centres

• Child-minding or community facility

The zoning (Business / Commercial) and the multi-use nature significantly enhance long-term holding value and redevelopment potential.

Land & Building Area

• Land area: approx. 1,530+ sqm across two properties with dual street frontage

• Building area: approx. 2,950 sqm

The combination of scale, location, income potential, and redevelopment options makes the site extremely strong security for a first mortgage loan.

2. Borrower’s Objective (First mortgage private loan Randwick)

The borrower required a private first-mortgage refinance to:

• Refinance the existing debt secured against the Randwick property, and

• Raise additional funding to pay off other debts secured against different properties

The goal was to consolidate liabilities into one efficient loan structure, simplify financial obligations, and release equity for broader strategic purposes.

This required speed, flexibility, and a lender capable of understanding complex security positions—making it an ideal scenario for a first mortgage private loan with Assurity Capital.

3. Assurity Capital’s First Mortgage Private Lending Approach

Assurity Capital approached the transaction with an asset-based, commercial mindset:

Low LVR = High Certainty

With leverage at only around 20% of the estimated $20M asset value, the equity position provided exceptional security.

Valuation Waived

Given the low gearing and strong location fundamentals, a full valuation was not required. Assessment was based on:

• Valuer General land value

• Local real estate agent’s opinion

• Comparable market indicators

This saved the borrower significant time and cost, enabling rapid progression.

Speed & Efficiency

Indicative terms were issued quickly, due diligence was streamlined, and settlement proceeded within the required timeframe.

Clear Exit Strategy

The borrower had a realistic and achievable exit strategy, supporting the funding structure and risk profile.

4. The Outcome

Assurity Capital successfully delivered:

• A first mortgage private loan secured against a premium Randwick property

• Low LVR (~20%), providing exceptional security

• Valuation waived

• Fast approval and settlement

• A funding package that allowed the borrower to:

  • Consolidate debt

  • Refinance existing facilities

  • Clear liabilities held against other assets

The borrower now has a streamlined, flexible lending solution aligned with their ongoing investment and operational goals.

5. Why This Case Matters

This transaction highlights the advantages of first mortgage private lending, especially for borrowers with strong assets and time-sensitive requirements:

Asset-based lending focused on real value

Not rigid bank policies.

Fast settlement

Banks can take weeks; private lenders act in days.

Flexible documentation

Low LVR transactions allow simplified assessment.

Ideal for complex borrowers

Multiple properties, multi-stream income, or corporate structures.

Broker-friendly, commercial mindset

We work collaboratively to make deals happen.

6. About Assurity Capital

Assurity Capital is a private lender offering:

• First and second mortgage loans

• Second mortgages (from $50,000+)

• No caveat loans

• Fast, flexible solutions for:

  • Property investors

  • Business owners

  • Developers

  • Sophisticated borrowers

  • Brokers seeking certainty & speed

Our lending model is simple: strong security, common-sense underwriting, and rapid execution.