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
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