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
DFP were retained by the client and have subsequently settled an $8m construction finance loan which delivered upon the following key objectives:
- The lender agreed to finance the early works and site remediation costs without a main construction contract signed under the one finance approval;
- Lender agreed to progressively release circa $400k in loan proceeds to the client against sunk costs and soft equity in land,
- Finance approved with unsigned construction contract with first time builder.
Quote from Client
“Your introduction to your lender who have achieved the timeline they said they would in our initial meeting is very much appreciated!”
Quote from Lender
“DFP are the hardest working advisers for their clients that we deal with. So a pleasure.”
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