Before restaurant entrepreneurs Eddie Muto and Harry Chua could realise their dream of opening the next chapter of successful Italian food hall, il Mercato Centrale, they needed a commercial broker and banking partner who understood their bold vision for a Melbourne version of the Italian foodie haven.

Bringing together 23 specialist food artisans under one roof at the three-storey 546 Collins St. site, would require not only a solutions-oriented lender but one who was prepared to take the time to get across all the detail of their ambitious vision – from fit-out to cash flow.

The Melbourne experience of il Mercato Centrale would require the construction of 23 separate kitchens, each providing the means for artisans to showcase their culinary skills, plus numerous dining rooms, restaurants and bars.

Although il Mercato Centrale is a well-established and successful artisan market franchise in Italy, with locations in Florence, Rome, Turin and Milan, the Melbourne site would be its first international outpost. This meant that, for lending purposes, the venture was effectively treated as a start-up, relying on projected cash flows. In addition, existing relationships with competitor lenders added complexity to finding the right funding solution.

An introduction by Invictus Finance Solutions, who count NAB among their trusted lending partners, started the ball rolling for the successful engagement between Melbourne il Mercato Centrale owners and NAB.

“Our commercial relationships at NAB quickly identified a senior relationship banker to us that was very specific to the hospitality industry,” says Invictus Finance Solutions Director, Elie Ayoub.

NAB Senior Business Banking Manager, Hamish Hampton, was heavily involved in all aspects of il Mercato Centrale’s experience with NAB from the initial funding concept through to credit negotiation, approvals and funding drawdowns, as well as acting as the day-to-day relationship manager.

“Hamish’s depth of knowledge and expertise allowed him to immediately engage with us and the client. He understood that to win the connection to NAB we had to have a hands-on approach,” says Mr. Ayoub.

That successful early engagement between broker, client and the bank developed collaboratively and ultimately lead to NAB managing the entire lending process from funding proposal through to il Mercato Centrale’s recent launch, and beyond. In addition, a series of cascading introductions have followed the initial meeting, as different parties to the deal have come to recognise NAB’s value in representing and negotiating complex lending requirements.

NAB Senior Business Banking Manager, Hamish Hampton, who acted as the client’s direct relationship manager, on how he worked with the client to tailor a holistic lending solution specifically matched to the business owner’s plans and trading forecasts:

“We worked with the il Mercato Centrale team on forward cashflow projections for the next 5 years, which provided great insight that was used to tailor a bespoke products suite. We provided multiple funding types that are specifically matched to the client’s expected turnover and cash conversion cycle, to ensure uninterrupted construction and trading. We negotiated for an extended period with the client to ensure the solution offered was best in market, providing ease of use from a customer perspective, while retaining risk controls for the bank.”

 Il Mercato Centrale Melbourne General Manager, Gary Pattikis, on his experience of working with NAB Commercial to come up with a holistic solution for the group’s unique lending requirements:

 “Our account manager, Hamish, visited the site both before and during the build to monitor progress and assist with claims. Hamish’s background in hospitality was particularly valuable, as it allowed us to communicate effectively and maintain transparency throughout the process.”

Invictus Finance Solutions Director, Elie Ayoub, and third-party mortgage broker introducer, on how the relationship between bank-borrower-and-broker on this deal delivered a strong, holistic banking solution for il Mercato Centrale’s owners:

“Other lenders added complexity by offering product solutions that would not have suited the fluidity of the transaction (example fit-out finance / tertiary goods leasing). Our solution (with NAB’s support) was to simplify things and provide an approved limit that allowed the client to draw down in arrears of works completed / assets acquired – matching repayment terms in accordance with their budgeted projections. In the end, NAB’s point of difference was in their simplified funding terms and funding structure.”