Senior Land Bank Loan 100% of purchase price, Sydney $20 million

Senior Land Bank Loan 100% of purchase price, Sydney $20 million

Development Finance Partners (DFP) was engaged to provide a funding solution for a large land bank acquisition in North Western Sydney. Despite a tight timetable and planning limitations, a $20.0M loan, representing 100% of the purchase price and 65% Loan to Value Ratio, was delivered.

THE KEY ISSUES FACED BY THIS SITE ACQUISITION
The client required us to assist in financing a large parcel which it had earmarked for a multi lot residential subdivision in North Western Sydney, NSW. The challenges included;

  • Negotiations had stalled with the existing funder;
  • Settlement date was four (4) weeks from initial client contact;
  • There were multiple vendors;
  • The site required rezoning; and
  • The rezoning application to Council had been deferred until 2018

DF PARTNER’S ROLE
DFP were retained to advice the client on funding strategies and to assist in financing the purchase of the site. In submitting and then promoting the transaction to its Capital Partners, DFP undertook a detailed assessment of the real estate fundamentals, the planning issues and the overall credit worthiness of the proposal.
Thereafter, DFP coordinated meetings with the clients, the Capital Partners, the planning consultants and the appointed valuers; and also assisted negotiations with the vendors, culminating in credit approval and successful settlement of the transaction. The Funding, representing 100% of the purchase price and 65% of current valuation, was structured with time buffers to accommodate the rezoning process, and included an interest capitalisation facility linked to that timetable.
 

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