Financing a regional service station at 65% LVR, then releasing $375K in created value
FGO Finance Group funded a regional Victorian service station at 65% LVR, a specialised asset class where the hurdle for the Big 4 to fund at a competitive LVR is much higher. Eighteen months later, after the investor completed renovations, a revaluation lifted the property from $1.675M to $2.05M. We re-leveraged back to 65% and released $243,750 in cash, reimbursing the client's renovation spend and crystallising $375K of created value (22.4% over 18 months).
The asset: a specialised site that's harder to fund at a competitive LVR
The client bought a service station in regional Victoria for $1,675,000 in October 2024. On paper it is exactly the kind of deal that stalls: a specialised asset class in a regional location, the combination most banks either decline or only fund at a low LVR.
- Specialised site, a petrol station rather than a standard commercial building
- Regional location outside metro lending appetite
- Asset class where the hurdle for the Big 4 to fund at a competitive LVR is much higher
- Investor completing post-settlement renovations, with capex to be reimbursed via a later revaluation
How do you finance a specialised regional asset at 65% LVR?
The work was matching the deal to a lender that understands the category rather than stopping at the first "no". We positioned the asset and its trading performance to secure 65% LVR, market-leading for a specialised, higher-risk regional asset, and structured it so the client could complete renovations and recover that spend later through the property's value.
How a revaluation released the equity
Eighteen months on, with renovations complete and the site trading well, we ordered a revaluation. It came back at $2,050,000, up $375,000 on the purchase price. Re-leveraging back to 65% LVR against that higher value released the difference as cash, reimbursing the client for the renovations they had already funded.
+$375K created value · 22.4% over 18 months
“His ability to understand complex deals and deliver competitive outcomes is truly impressive.”
FGO Finance Group client · Commercial propertyQuestions this deal answers
Can you get 65% LVR finance on a regional service station?
Yes. We secured 65% LVR on a regional Victorian service station, a specialised, higher-risk asset class where the hurdle for the Big 4 to fund at a competitive LVR is much higher. It took a lender who understood the asset and the trading performance behind it.
How does re-leveraging after a revaluation release equity?
A revaluation reassesses the property at a higher value. Refinancing back to the same loan-to-value ratio against that higher value releases the difference as cash. Here, a revaluation to $2.05M at 65% LVR released $243,750, which reimbursed renovation costs the client had already paid.
Why is specialised regional commercial property harder to fund at a competitive LVR?
Specialised assets like service stations sit outside standard credit policy, and regional locations fall outside metro lending appetite. The hurdle for the Big 4 is much higher and many cap the LVR low. The deal needs a broker who can position the asset and trading performance to a lender that understands the category.
Working on something specialised, regional, or off-pattern? See how FGO approaches commercial finance, our page on commercial property finance in Melbourne and Victoria, or read more client case studies. For context on the commercial property market where yield and vacancy tell a different story to price headlines, read Melbourne Commercial Property: What the Price Headlines Are Missing.