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COMMERCIAL PROPERTY FINANCE

Commercial Property Finance involves financing of fixed property used exclusively by owners and / or tenants for trading purposes or for providing professional or other services for financial gain. This includes office and general commercial accommodation.

Commercial Property Finance is available to:

  • SMME’s which will operate from the premises concerned
  • Property holding entities with substantially similar shareholding as the operating business;
  • Developers of properties for rent to SMME’s; or
  • Developers of properties or infrastructure which will be benefit previously disenfranchised communities
  • Properties to be purchased as an investment property

Products offered under this fund include:

  • Property Acquisition Finance
    • This term loan serves the purpose of financing the acquisition of commercial properties. The repayment term is generally 10 years though can be linked to the period of a contract such as a signed lease agreement for student accommodation.
  • Working Capital Finance Term Loan
    • This term loan serves the purpose of financing expenditure required to properties such as repairs and maintenance or small additions that are envisaged to take a short period of time. The maximum term for this product is 36 Months but it can be adjusted to suit the cash flows of the business been financed.
  • Working Capital Finance Revolving Loan
    • This loan serves the purpose of financing property projects that require funds to be drawn at various stages of the project life cycle with a fixed cap on the facility. This option provided the client with the advantage of not having to reapply for a new facility each time funds are needed. The maximum term for this product is 12 Months but it can be adjusted to suit the cash flows of the business been financed.
  • Risk Finance
    • This funding requires a minority equity stake to be taken in the project been funded. Projects qualifying for this funding will be assessed on an individual basis. The maximum term for this product is 120 Months but it can be adjusted to suit the cash flows of the business been financed.
  • Guarantees
    • A guarantee will be issued in respect of certain property transactions. The maximum term for this product is 12 Months but it can be adjusted to suit the cash flows of the business been financed. A monthly or annual management fee is normally charged.
  • Property Development Finance
    • This term loan serves the purpose of financing property developments. These developments can be residential or commercial in nature with the client securing tenants or having presales in place for residential developments. The scope of this loan also extends to business owners who wish to build their own premises for their businesses. The repayment term is generally 10 years though it can be linked to the period of a contract such as a signed lease agreement.

© Copyright 2017
Ithala is an Authorised Financial Services and Credit Provider
FSP License No. 17139 NCRCP No. 1559 Reg No. 2001/007427/30
Ithala SOC Limited is a wholly-owned subsidiary of Ithala Development Finance Corporation Limited