Case Study | Residual Stock Loan – Heidelberg, VIC

Case Study | Residual Stock Loan – Heidelberg, VIC

$3m Residual Stock senior debt loan for completed development at 70% LVR – Heidelberg, VIC

Background

We were engaged by the borrower to obtain residual stock finance to exit a construction loan that DFP sourced and settled with the client in the middle of the first-wave of COVID-19.  

The client completed construction in August 2021 however, was then delayed in putting the completed dwellings on the market due to a further COVID-19 lockdown across Melbourne, Victoria.  

The client sought an LVR of 70% to repay the construction facility, bring forward some profit and to allow for equity released from its completed project to be deployed strategically into other portfolio assets.  DFP successfully negotiated terms with a preferred capital partner and was able to deliver the result sought by the client to enable a strategic sell-down of the completed dwellings to maximise both saleability and profitability.

The Developer

The developer has undertaken many successful projects and prides itself on being painstakingly precise which ultimately delivers high-quality results.  This developer is well equipped to take on all facets of any small/medium density project and always delivers on time, under budget and to the highest of standards.

Challenges

The client was seeking a quick and reliable funding solution, to allow an orderly and measured sell down of finalised townhouses and an early release of embedded equity created via the project.

Result

Fast & Flexible Residual Stock Finance | $3.0 million at 70% LVR

DFP arranged a no minimum term, residual stock facility for $3m at an LVR of 70%, approved within weeks over the difficult Christmas/New Year period and settled with a financier who will provide flexibility to the client as the residual stock sells down.

Looking for finance options for your next project, talk with our team today.

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