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).
| Asset | Service station (petrol station) |
|---|---|
| Location | Regional Victoria |
| Finance type | Commercial property loan, then equity release via re-leverage |
| Original purchase price | $1,675,000 (October 2024) |
| Loan-to-value ratio | 65% LVR (market-leading for the asset class) |
| Revaluation (18 months later) | $2,050,000 |
| Capital growth | $375,000 (22.4% over 18 months) |
| Funds released on re-leverage | $243,750 |
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, or read more client case studies.
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