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Rebus Capital helps TRM Properties secure funding for lockdown expansion

Posted by: Danielle Moore at March 24, 2022

Richard Moulton and his brother Tom are co-founders and directors of TRM Properties – a company that oversees a portfolio of serviced hotels across central Melbourne & regional Victoria. They strive to be the hotel of choice across their South Yarra and Sale locations

Richard and Tom transform the often dated accommodation assets into modern, boutique destinations equipped with all the latest technology – suitable for corporate, overnight, or long stays and family gatherings.

Richard and Tom saw opportunities in the regional accommodation sector open up during the COVID-19 lockdowns. They planned ahead and were ready to take advantage of the slowdown in the market. With a strong asset base and several well-performing properties they knew would support their growth objectives.

The challenge faced by TRM Properties

Their confidence in the accommodation sector wasn’t shared by traditional lenders, however, when they sought funding for their expansion in the last quarter of 2020. After three weeks of fruitless searching for funding, their lack of progress led to a referral to Tom Chirnside at Rebus Capital.

They shared their business case with Tom and, after a face-to-face meeting in late October, he reassured them that their plan had merit and he was confident he could obtain finance for them. Tom presented the initial information to a potential funder and, by Christmas of 2020, they had their first meeting to get their application underway.

As this was their third property, they had to share the success stories of their previous acquisitions. This included their niche in the Melbourne accommodation market and how they not only weathered the COVID-19 lockdowns but remained liquid and positioned to take full advantage of the rebounding market.

The Rebus Capital solution

Richard and Tom Moulton then gathered all the detailed information the lender needed for Tom at Rebus, which culminated in a final financing proposal in February. Although all the elements were in place to move ahead with the acquisition of the property at that point, they decided to hold off due to project delays and the uncertainty due to further lockdowns.

This subsequently saved a material amount in acquisition costs and potential losses over the lockdowns as they settled later in the year. The bank was able to use the information supplied previously and simply update it for approval in September, making it a smooth and seamless process.

Why TRM Properties chose Rebus Capital

Richard and Tom explored funding options with several capital solutions firms. After talking to Tom at Rebus Capital they emerged with confidence on how the project could be structured financially.

Due to the pandemic, the project experienced a delayed settlement, which added complications for Tom and the lenders. This meant Tom had to keep the bank confident, which he managed successfully. In the end, Richard and Tom Moulton saved around 25% on the initial purchase price.

“Tom understood what we were doing, which is to buy an asset for less than it costs to build, even though it may not look positive according to the books. He understood that the value lay in our ability to turn the property around and start operating in a more modern, more corporate manner.” – Richard Moulton, TRM Properties

Contact Rebus Capital for your capital solutions

Do you need flexible finance? If you’re looking for corporate or specialist finance support, talk to Rebus Capital today.

Please get in touch.

Danielle Moore

The Trustee for the Rebus Capital Partners Unit Trust ABN 88 452 904 420. Authorised Credit Representative 523233 under Australian Credit Licence 536100.