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Commercial Real Estate Loan Term Sheet Template for Australia

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Key Requirements PROMPT example:

Commercial Real Estate Loan Term Sheet Template

"I need a Commercial Real Estate Loan Term Sheet Template for a $50M construction facility for a mixed-use development in Melbourne, with the facility to be drawn down in stages starting March 2025, including specific provisions for sustainability-linked pricing incentives."

Document background
The Commercial Real Estate Loan Term Sheet Template is a crucial document used in the initial stages of commercial property financing in Australia. It serves as a preliminary agreement between lenders and borrowers, setting out the fundamental terms and conditions of the proposed facility before proceeding to full loan documentation. This template is designed to comply with Australian banking regulations, property laws, and financial services requirements, while being adaptable to various commercial property types and financing structures. It typically precedes the preparation of formal facility agreements and security documents, providing a clear framework for negotiations and subsequent detailed documentation. The template is particularly valuable for financial institutions, property developers, and commercial property investors seeking to document their preliminary lending arrangements efficiently and comprehensively.
Suggested Sections

1. Parties: Identification of Lender, Borrower, and any Guarantors

2. Background: Brief context of the proposed financing arrangement

3. Definitions: Key terms used throughout the term sheet

4. Facility Details: Type of facility, amount, purpose, and term

5. Interest and Fees: Interest rate, calculation method, fees structure

6. Security: Details of all security to be provided, including mortgages and guarantees

7. Key Commercial Terms: Repayment terms, prepayment provisions, and key financial covenants

8. Conditions Precedent: Requirements to be satisfied before funding

9. Ongoing Requirements: Financial reporting, property maintenance, and other continuing obligations

10. Events of Default: Circumstances that would trigger default

11. Representations and Warranties: Standard declarations about the borrower's status and capacity

12. Governing Law: Specification of applicable jurisdiction

Optional Sections

1. Construction Facility Terms: Include when the loan involves property development or significant renovations

2. Environmental Matters: Include for properties with potential environmental risks or requirements

3. Multiple Property Provisions: Include when the security involves multiple properties

4. Hedging Requirements: Include when interest rate hedging is required

5. Property Management: Include when specific property management requirements are needed

6. Special Purpose Vehicle Requirements: Include when borrower is required to be or is an SPV

7. Foreign Investment Provisions: Include when foreign investment approval is required

8. Subdivision Provisions: Include when property subdivision is contemplated

Suggested Schedules

1. Property Schedule: Detailed description of the security property/properties

2. Financial Covenants Schedule: Detailed listing of all financial covenants and calculations

3. Fee Schedule: Comprehensive breakdown of all fees and charges

4. Conditions Precedent Checklist: Detailed list of all required conditions precedent

5. Required Insurance Schedule: Specification of required insurance coverage

6. Permitted Encumbrances: List of accepted existing encumbrances on the security property

7. Construction Budget and Timeline: For construction facilities, detailed budget and milestone schedule

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓƵ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
























































































Clauses









































Relevant Industries

Banking & Financial Services

Commercial Real Estate

Property Development

Retail Property

Industrial Property

Office Property

Healthcare Property

Hospitality & Tourism

Mixed-Use Development

Logistics & Warehousing

Senior Living & Aged Care

Student Accommodation

Relevant Teams

Legal

Credit Risk

Commercial Lending

Property Finance

Loan Operations

Due Diligence

Relationship Management

Credit Assessment

Property Valuation

Transaction Management

Documentation

Compliance

Real Estate Finance

Relevant Roles

Commercial Lending Manager

Property Finance Manager

Credit Risk Officer

Commercial Real Estate Analyst

Legal Counsel

Relationship Manager

Credit Manager

Property Development Manager

Investment Manager

Transaction Manager

Due Diligence Officer

Loan Operations Manager

Commercial Property Valuer

Banking Executive

Real Estate Finance Director

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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