Case Study | First Mortgage loan plus cash out for land purchase, South Coast, NSW

June 15

DFP secured refinance to provide cash out for working capital, plus land bank finance to assist with the purchase of a large 465 ha rural residential land parcel located on South Coast of NSW.


Project Background

DFP was engaged by the borrower to obtain a first mortgage loan and refinance with an existing lender and provide cash out for working capital.

In addition, asked to urgently provide finance to assist with the purchase of a large rural residential land parcel located on the South Coast of NSW.

Key Challenges

  • Land bank finance for a large rural residential land parcel of 465 hectares
  • Urgent timeframe for settlement
  • LVR 50% required to settle

DFP's Role:

  • DFP was formally engaged by the developer, and immediately undertook due diligence of the transaction and prepared an executive summary for the capital underwriter
  • DFP discussed the urgency of the matter with the capital underwriter and the "opportunity costs" of proceeding quickly to take the property off the market
  • The capital underwriter within 24-hours issued a formal loan approval, subject to valuation and provision of the subdivision documents to be provided immediately after settlement for their legal team to review and consent to be provided
  • DFP arranged for urgent valuation to be conducted

 The Result

  • The valuation was subsequently completed to the capital underwriters' satisfaction, and within 48 hours the loan documentation was prepared and sent to the client's lawyers for execution
  • Given the large rural land parcel and LVR of 50% confirmed
  • Documents signed and returned for certification for settlement
  • Refinance effected and cash out provided to the client

DFP delivered:

  • Finance secured, terms approved within a short timeframe and urgent valuation completed
  • Loan amount: $1,400,000. Settled within timeframes to enable the client to purchase a land parcel

To find out more about our land bank finance options, request a call back.



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