Case Study | Land Bank Finance – Warriewood, NSW
Development Finance Partners was engaged to provide an urgent short term funding solution for a development site. DFP secured the necessary funding within one week.
The development is located on the northern beaches of Sydney at Warriewood, NSW.
- Construction facility – $8,500,000 to assist with acquisition of land and construct 7 Townhouses and 6 x 2-bedroom units at Warriewood NSW
- Land Bank loan – $900,000 to assist with the settlement of a D.A. Approved Unit site at Warriewood NSW
The developer has background experience in developments and also runs a successful, research property development and management company. They have successfully delivered a range of development projects over the past several years.
The Brief: Secure urgent funding to keep the project moving ahead
The developer had recently completed a subdivision of a development site at Warriewood. The subdivision comprised of 10 new lots, a super lot for 6 units and a 7 x community title townhouses.
- The vendor had retained the original house property and the adjoining residential lot, while the client retains the 7 lot townhouse site and the unit site.
- The development funding for the subdivision (stage 1) was facilitated by DFP who sourced a capital partner following pre-sales equating to 100% debt cover being achieved.
- The development funding for the townhouse construction of the townhouses (stage 2) was secured within 14 days which enabled the client to commence construction immediately.
- The development funding for the land settlement and construction of the unit site (stage 3) was secured within 1 week from application to settlement, which enabled the client expeditiously start construction of the units.
- DA schemes are approved for both stand-alone projects.
Key Challenges: Complex transaction and urgent timeframe
- Project 1: Secure development finance for the construction of 7 townhouses, part of which required the unit site to be on-sold.
- Project 2: Urgently assist to arrange a land bank facility to settle the unit site, which automatically allowed construction to start with the landbank facility rolled in.
Finance secured and transaction completed in 1 week
- We had previously facilitated and arranged the construction finance for the 7 townhouse development and acquisition of the original site.
- We agreed with the client that an urgent short-term solution for stage 3 was required to settle the deal.
- Based on the brief from the client and the issue around the critical deadline, we secured support from its underwriter to fund the transaction to settle the unit site. This finance was arranged, mandated and documents executed within 1 week of the client seeking assistance.
Development Finance Partners were able to work through the urgent request, credit submission, approval and settlement in just over a week and delivered the desired outcome on time. The clients’ expectations were met and exceeded. A great outcome for the client and the DFP team.
What the client says…
“This was a particularly difficult land settlement. It was a very complicated purchase structure with a lot of moving parts. DFP got it done in 6 days including valuation and land settlement.
I chose to work with DFP again as I knew that they were one of the few finance partners who could navigate the complexities of the project and could leverage their existing network of contacts to get the result I needed.”
– Jonathon Tyree, ARH Warriwood Pty Ltd
For expert advice:
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Sydney NSW 2000
P / 02 8916 6246
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Melbourne VIC 3000
P/ 03 8692 0082
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Brisbane QLD 4001
P / 07 3041 4136
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