CASE STUDY:
How did an ex-petrol station site fuel a $8M construction loan?

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’s ROLE DFP were retained by

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