Refinancing a Portfolio of Accommodation Assets Before FY27
Refinance an Accommodation Portfolio | Switchboard Finance
Accommodation Finance
Portfolio Refinance · Going Concern · FY27 Structure
Refinancing a Portfolio of Accommodation Assets Before FY27
If you hold more than one motel, park or freehold and lease site, a portfolio refinance can pull the debt into one facility, reset the terms, and release equity before the new financial year. The point is to set the FY27 capital structure on purpose, not inherit it.
Quick Answer
Refinancing a portfolio of accommodation assets combines the debt across several properties into one facility, then uses a refinance to reset terms and release equity. Lenders read each asset on its going-concern value, so the structure and timing of the move matter before year end.
What a portfolio refinance actually changes
A portfolio refinance combines the debt behind several accommodation properties into one facility, then resets the terms so the whole position works for the next financial year. Putting one facility across several assets is not just about a cheaper rate. It is deciding how much to borrow against each property, where to release equity, and how to set the FY27 capital structure deliberately rather than by default.
From the underwriter's seat, the cleanest portfolios are the ones where ownership and security are easy to follow. There are really only a few levers: how many securities sit behind the facility, the blended LVR across them, and whether the move is a straight refinance or a wider release and restructure. Our accommodation finance hub maps the lane, and the LVR set on each property is where most of the structure is decided.
Map your portfolio to how a lender reads it
Where a portfolio refinance lands depends on which tier your assets sit in, because lenders read each tier differently. The map below sets the common situations against the going-concern valuation read and where the structure usually settles.
A qualified valuer assesses each asset as an operating business, and members of the Australian Property Institute work to the standards that read applies. A cross-collateralised position, where several properties already secure each other, is the one that most often needs untangling first, and the difference between a freehold and leasehold asset changes the read again. Across a clean group the blended LVR is typically 60 to 70 percent and varies by lender, which is why the going-concern valuation read on each property does so much of the work.
When a portfolio refinance is the stronger fit
A portfolio refinance is the stronger fit when the assets trade well and the structure is clean, and it gets tricky when freehold and leasehold securities, entities and tenure are tangled together.
Stronger fit
- Freehold assets held in one clear entity
- Consistent trading history across the portfolio
- Room in the blended LVR to release equity
- A clean security position, not cross-collateralised
Gets tricky
- Securities cross-collateralised across lenders
- A freehold and leasehold mix with different reads
- Recent acquisitions with thin trading history
- Assets spread across several trusts or entities
Where it gets tricky, the fix is usually sequencing. A short private capital step can reset a tangled security position before the main refinance, so the bank facility lands against a cleaner structure. Where this commonly lands is a release and restructure done in two moves rather than one, with the second move setting the long-term terms.
The order you refinance in shapes the result
The order you refinance the assets in shapes the whole result, because the strongest freehold in the group sets the benchmark a lender reads every other property against. Lead with the cleanest, best-trading asset and the blended LVR anchors high. Lead with a leasehold or a recently acquired site and the read drags the rest of the group down with it.
So the practical sequence on a portfolio refinance is to put the freehold going concerns first, settle the blended position against them, then bring the leasehold or thin-history assets in behind a structure that already reads well. Where one security is tangled or cross-collateralised, a short private capital step can clear it ahead of the main move, so the bank facility lands against a clean group rather than a knot. A quick eligibility check frames what each lender will support before you commit to an order.
Set the FY27 capital structure, not just clear the loan
Setting the FY27 capital structure means deciding now how the refinanced facility should look for the year ahead, not just clearing the current loan. That is the difference between a refinance that buys twelve months and one that sets the portfolio up for the next stage of release and restructure.
The planning backdrop helps here. The Government has announced a reinstated loss carry back from 2026-27, letting eligible companies offset a loss against tax paid in the prior two years, and from 1 July 2027 it has proposed rollover relief to assist small businesses that wish to restructure, including the many accommodation assets held in trusts. None of this is law yet, but it shapes how owners think about a restructure year, and an equity release and refinance that frees capital can fund the next move while the structure is being reset.
For a single asset that is a straight equity release, and we cover it in releasing equity from a freehold pub or motel. Across a portfolio the same idea scales, but the going-concern valuation on each property, and the order you refinance them in, is what actually sets the FY27 capital structure.
A portfolio refinance is less about chasing a rate and more about setting the FY27 capital structure on purpose: combining facilities, reading each asset on its going-concern value, and deciding where to release and restructure. The tier your portfolio sits in decides how cleanly it lands, and a tangled security position is worth untangling before the main move, not after.
Key takeaway: Map your portfolio's tier and structure first, then refinance to set FY27, not the other way around.Frequently Asked Questions
Refinancing a business does not by itself trigger capital gains tax, because you are changing the loan, not selling the asset. CGT is generally a disposal event, so a straight refinance that keeps the ownership the same usually sits outside it. Where a refinance is paired with a restructure that moves assets between entities, that step can have CGT consequences, so confirm the structure with your accountant before you act.
Refinancing several accommodation properties into one loan is common, and it is the core of a going-concern portfolio refinance. Lenders combine the securities into one facility and set a blended LVR across the assets, which varies by lender. It works most cleanly when the properties sit in a tidy ownership structure and trade well.
Lenders value a motel or park portfolio on its going-concern value, reading each asset as an operating business rather than vacant land. A qualified valuer assesses trade, tenure and condition, and the Australian Property Institute sets the professional standards those valuers work to. The blend of freehold and leasehold across the portfolio shapes the final read.
The LVR on an accommodation portfolio refinance is typically around 60 to 70 percent and varies by lender, depending on tenure, trade and security mix. A clean freehold group with strong trading sits at the stronger end, while a leasehold-heavy or recently acquired portfolio reads more cautiously. Our LVR guide explains how the ratio is calculated.
Refinancing before the end of the financial year can help you set the FY27 capital structure with the new terms in place from day one, rather than carrying old facilities into the new year. The timing also lines up with planning your freehold or leasehold position and any restructure. There is no single right date, so map the portfolio and speak to a broker about what fits your year.
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