Specialised Commercial Property Loans Australia

It comes down to risk and exit options. If a borrower defaults on a standard retail shop, lenders know they can sell or re-lease it relatively easily. A car wash or bowling alley? Much smaller buyer pool.

We find most lenders want 30-50% deposits on specialised assets to protect themselves against this limited marketability. The good news is that once you’re in, these properties often generate strong yields that make the higher equity requirement worthwhile.

Yes, though your options narrow considerably. SMSF lenders are cautious with specialised assets at the best of times, and we typically see maximum LVRs of 50-60% for properties like car washes or gyms.

The property also needs to meet the ATO’s sole purpose test and comply with limited recourse borrowing arrangement (LRBA) rules. We’ve helped clients purchase caravan parks and fitness centres through SMSFs, but it requires the right lender and careful structuring. Our SMSF commercial property finance page covers the basics, and the Australian Taxation Office SMSF guidance is worth reading before you get too far down this path.

Two to three years of financials is the baseline for most lenders. They want to see the business actually works before they’ll lend against it.

If you’re buying an existing operation, lenders will scrutinise the vendor’s profit and loss statements, and they’ll want evidence you know what you’re doing in that industry. First-time operators without relevant experience face an uphill battle. Our clients who get approved usually have either direct industry experience or a solid track record running similar businesses.

Some will. We’ve settled deals in regional Queensland and NSW, but expect lenders to sharpen their pencils on the terms.

Regional locations mean smaller buyer pools if things go wrong, so lenders typically reduce LVRs by 5-10% compared to metro equivalents. A gym in suburban Brisbane might get 65% LVR; the same gym in Bundaberg might cap at 55-60%. For very remote locations, options become genuinely limited. Give us a call on 1300 262 098 if you’re looking regionally and we’ll give you a realistic assessment.

This is where we can do our best work.

Banks decline specialised properties all the time because they don’t have credit policies for these assets. It’s not personal, they just don’t understand car washes or caravan parks, so they say no. We work with 60+ lenders, including specialists and private funders who actively want these deals.

Over [sbp_years_experience] years we’ve built relationships with the handful of credit managers in Australia who genuinely understand going concern valuations.

A bank decline doesn’t close the door. Get in touch and we’ll let you know what’s actually possible.

Longer than standard commercial. We tell our clients to plan for 6-10 weeks from application to settlement.

The extra time comes from going concern valuations, which require specialist valuers who assess both the property and business. These valuers are in short supply, and their reports take longer to complete. The Australian Property Institute maintains a register of certified valuers if you want to understand more about the valuation process.

We also find lenders ask more questions on specialised deals, so factor in time for back-and-forth on trading figures, environmental reports (especially for car washes and service stations), and operator experience. Rushing these deals rarely ends well. For complex scenarios, the Reserve Bank’s credit conditions data gives useful context on how tight or loose lending conditions are at any given time.