Land Bank Funding for 60% of Valuation for South Coast Short Stay Accommodation
- Client was having difficulty securing funding for a development in the Shoalhaven region. The DA approved site was for 16 residential strata villas and 1 café. The villas are “tourist” short stay, pursuant to the zoning which is SP3 Tourism.
- The issues were mostly related to the “short stay” nature of the zoning
- Development Finance Partners (DFP) was engaged to expedite a funding solution that met the Client’s requirements
- DFP recommended the Client order a commercial arm’s length valuation which would provide definite project feasibility numbers to work by and which would provide support for the development. We recommended a valuation firm that was well recognised and on the panel of a wide range of lending institutions. The valuation confirmed that this location had a shortage of short stay accommodation within close proximity to the beach
- Review valuation and complete due diligence
- Produce a land bank funding proposal in the first instance which would be subsequently refinanced by a construction facility
- DFP completed a Funding Proposal for a Land bank facility for 6 months. This would enable the Client to secure the site, commence preliminary works and marketing to enable presales to underpin a construction facility. Once this would be achieved, the subsequent refinance into a construction facility would be underpinned by evidence of a market for the end product (of which there was a shortage of stock in this location)
- DFP secured an offer for funding of the site within one week of receipt of the valuation
- Settlement has now been completed.
What the client says:
“Thanks to Development finance partners our project has secured funding in a regional area zoned for tourist use. To date DFP have been nothing short of a pleasure to deal with. They have been willing to spend time to understand the finance requirements with restrictions and to put a workable funding option together, that would not be an option with any of the major banks. I look forward to continuing our relationship on this project and others.”
Could your next project benefit from some expert development finance? Get in touch.
For expert advice:
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Sydney NSW 2000
P / 02 8916 6246
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Melbourne VIC 3000
P/ 03 8692 0082
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Brisbane QLD 4001
P / 07 3041 4136
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