A Gourmet Xchange unit is financed with cash and a bank loan. Banks set the loan-to-value by use, typically up to about 90% for an owner-occupying operating company and about 80% for investment, and many prefer to lend to a company. CPF cannot be used. Figures are indicative as at October 2026. For the development itself, see the Gourmet Xchange home page.
The cash needed to secure a unit
Under the progressive payment schedule the buyer pays the first 20% of the price across the eight-week S&P period, before the bank disburses anything, together with GST on it, Buyer’s Stamp Duty and legal fees. At the $2,080,000 entry price and 80% loan-to-value that comes to about $531,040: $416,000 of instalments, $37,440 GST, $73,600 BSD and a $4,000 legal fee. At 90% the bank draws the excess at completion of the sale, which reduces the cash needed upfront to about $323,040. The purchase calculator reproduces these figures and lets you change them.
Loan-to-value
There is no fixed MAS loan-to-value limit for industrial property. Each bank sets its own, and the main factor is use. An operating company buying the unit for its own production is generally treated most favourably, at up to about 90%; an investment purchase leased to a tenant is typically nearer 80%. A borrower who already has housing loans may be offered less, and a short remaining lease reduces both the percentage and the tenure.
Company or individual
Many banks prefer to lend to a company for a B2 industrial unit, and some lend only to companies. A company borrower is assessed on its financial statements. Individuals, including sole proprietors, are assessed under the Total Debt Servicing Ratio, which caps total monthly debt repayments at 55% of gross monthly income. The industrial loan page sets out both.
Tenure and the lease
Industrial loans commonly run up to 25 to 30 years, within the remaining lease. The Gourmet Xchange lease runs for 33 years from 17 February 2025, to February 2058, which supports a full-length loan for a purchase made now — see the lease insight. The calculator opens at 25 years and 2.10%, an indicative industrial rate; check the rate that applies after any lock-in period.
The numbers at a glance
| At $2,080,000 | 70% LTV | 80% LTV | 90% LTV |
|---|---|---|---|
| Cash before the loan starts | $531,040 | $531,040 | $323,040 |
| Cash later in construction | $208,000 | – | – |
| Loan when fully drawn | $1,456,000 | $1,664,000 | $1,872,000 |
Indicative, with a $4,000 legal fee, before fitting-out, valuation and bank charges; confirm with your bank. At 70% the loan runs out before completion and the final stages are paid in cash.
Follow-up questions
Is the interest rate fixed?
Industrial loans are offered on fixed or floating packages, often with a lock-in period. The calculator opens at an indicative 2.10%; the rate after the lock-in matters as much as the headline.
When do repayments start?
Interest is paid on the amount drawn as each construction instalment is disbursed, so repayments start small and rise through the build until the loan is fully drawn.
Financing across the unit range
| Unit type (from, Oct 2026) | Price | Loan at 80% | Cash before the loan (20%, its GST, BSD) |
|---|---|---|---|
| Standard B2 (Food) | $2,080,000 | $1,664,000 | $527,040 |
| Heritage Terrace | $6,107,000 | $4,885,600 | $1,606,276 |
| Deluxe B2 (Food) | $6,220,000 | $4,976,000 | $1,636,560 |
| Restaurant (F&B) | $8,811,000 | $7,048,800 | $2,330,948 |
Indicative, before legal fees, valuation and bank charges. Confirm with your bank.
Working capital alongside the loan
A purchase is rarely the only call on a food business’s cash. Fitting out a production unit, buying equipment and covering rent on existing premises during construction all run alongside the progressive payments. Many owners therefore keep the loan-to-value high and finance the fit-out separately, to protect working capital. A bank will look at the whole picture — the purchase, the fit-out and the business plan — when it sizes the facility.
How the loan is drawn
During construction the bank pays the developer stage by stage. At 80% loan-to-value on a $2,080,000 unit, the buyer funds the first 20% — $416,000 — across the S&P period, and the bank then pays the 10% foundation stage, the 10% framework stage, the five 5% construction stages, the 25% TOP instalment and the final 10%, until the full $1,664,000 is drawn. Interest is charged only on the amount drawn, so the monthly repayment rises through the build and reaches its full level at completion — about $7,134 a month over 25 years at an indicative 2.10%. At 90% the bank draws the excess at completion of the sale. The purchase calculator shows each stage.
Preparing an application
Banks typically ask for the company’s financial statements, management accounts and a short business plan for the unit, alongside the option to purchase. Getting an in-principle approval before exercising the option keeps the eight-week S&P period on track. Fitting-out costs are usually financed separately or from cash. See the payment scheme for timing, and book the sales gallery to discuss the numbers for a specific unit.
