$19.10m Construction Finance Carnegie, VIC

$19.10m Construction Finance Carnegie, VIC

Development Finance Partners (DFP) was engaged by its client to assist with refinancing the security property and funding development and construction costs of a five-storey mixed-use building comprising 47 residential dwellings, a retail space and café premises in Carnegie Victoria.

DFP had previously assisted the client with funding to acquire the site and undertake the development approval process.

The Key Issues faced for this proposal

  • Ongoing COVID-19 restrictions in Victoria generally, and impacts on work conditions etc. on building sites more specifically
  • A conservative lending environment
  • Difficulties in predicting trends in property values
  • The client had a complex corporate structure and a sizable debt load on a pipeline of Melbourne based projects
  • The preferred Capital Partner had existing loan exposures with the client
  • The client required a facility with no presales
  • The client was an owner, albeit highly experienced, builder
  • Initial construction works had begun

DFP’s Role

  • The client provided DFP with an overview of its funding requirements.
  • DFP undertook due diligence on the project, the location, the marketability of the product and the clients’ financial position.
  • A funding structure and outline was thereafter agreed, the key terms and conditions of which were incorporated in DFP’s formal Finance Proposal and Service Agreement.
  • DFP was formally engaged by the clients under the Service Agreement.
  • DFP held initial discussions with Capital Underwriters ahead of preparing and submitting a detailed Credit Paper with supporting documentation.
  • DFP responded to requests for information during the Capital Partners due diligence and credit process.
  • The Capital Partner subsequently issued an indicative loan approval on terms acceptable to the client and in line with DFP’s Finance Proposal and Service Agreement
  • DFP managed the ongoing client/underwriter relationship and assisted in the carriage of valuation, quantity surveyor reporting and loan documentation.

Outcomes

  • The Capital Partner approved a $19.10m funding facility based on a 62.35% loan to value ratio with no presales
  • 14-month Facility
  • Site refinance and initial drawdown recently settled.
  • Construction well underway
  • The client is delighted with the results delivered by the DFP Team.

 

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