Settled August 2026 · $585,000
SMSF purchase of a business owner's trading premises
The owners of a small manufacturing business had leased their Newcastle factory unit for nine years.
| Purchase price | $900,000 |
|---|---|
| Amount financed | $585,000 at 65% LVR |
| Structure | Limited recourse borrowing arrangement |
| Time to settlement | 10 weeks |
| Broker | Anthony Di Martino |
The situation
The owners of a small manufacturing business had leased their Newcastle factory unit for nine years. The landlord offered to sell at $900,000. Their self-managed super fund held roughly $420,000 and their accountant had raised the possibility of the fund acquiring the property as business real property and leasing it back to the trading company, rather than the owners watching the rent leave the business for another nine years.
What we did
This was advice-led, not broker-led. The accountant and a licensed SMSF adviser confirmed the strategy, the trust deed permitted the borrowing, and a bare trust was established for the limited recourse borrowing arrangement. Our role was the finance: identifying lenders active in SMSF commercial lending, testing the fund's serviceability from contributions and market rent, and ensuring a liquidity buffer remained after settlement.
The outcome
A limited recourse borrowing arrangement settled at 65% LVR against a valuation supporting the contract price, with the fund contributing the balance plus costs. The trading company now pays market rent to the fund under a written lease at arm's length. Settlement took ten weeks from application, driven mainly by the valuation and the legal documentation for the bare trust, and the fund retained a liquidity buffer after costs as its adviser required.
Illustrative and anonymised. Outcomes depend on the business, the lender and the assessment at the time. This is not a promise of the same result.