Development Finance Partners (DFP) was engaged to provide a funding solution for early works, site remediation and construction of a mixed use project located in Manly NSW.
DFP arranged and settled a 15 month non-bank construction facility based upon an On Comp LVR of 65%.
THE KEY ISSUES FACED BY THIS FINANCE APPROVAL AND SETTLEMENT
- During the period of the land purchase contract the client had obtained a DA for 7 Residential Lots and 2 Commercial Tenancies;
- Financing against a $3.8M “as is” valuation and not the $1.64M purchase price;
- Cost to complete risk associated with a variable land remediation cost as part of split early works and unsigned main works construction contracts.
- Client required the financier to release circa $400k against their soft equity in land and sunk costs invested to date.
- First Time Builder
Subscription is required to continue reading the entire content.
Sydney Office
Level 3, 31 Alfred St
Sydney NSW 2000
P / 02 8916 6246
Melbourne Office
Level 30/35 Collins Street,
Melbourne VIC 3000
P/ 03 8692 0082
Brisbane Office
Level 18, 175 Eagle Street
Brisbane QLD 4001
P / 07 3041 4136
- Development Funding – What are the real property development costs involved?
- Navigate today’s commercial property market trends and overcome the pre-sales hurdle
- Our Domestic Credit Squeeze – The Perfect Storm and Opportunity for the RBA & Property Developers
- How property developers can thrive in a changing economy
- Development Finance Partners recognised as one of Australia’s most innovative and fastest growing companies
Leave a comment