Landmark Project in Melbourne, VICTORIA

Landmark Project in Melbourne, VICTORIA

Medium Density Residential Development (Settled in 10 days)

Issues

  • Client had an unencumbered site and a Development Consent for 23 units and a ground floor retail shop.  They had been issued with a Terms Sheet from a major Bank for construction funding with the 60% debt cover already achieved (10 presales)
  • On the strength of that the Client commencement construction with his own funds.  The Builder also completed further works from his own cash flow
  • The Bank shifted the goal posts to 100% debt cover
  • The Client was left dangling with outstanding builder payments, stalled construction, no funding and with his own cash resources tied up in the project.

 

Scope

  • Development Finance Partners was engaged to find a solution
  • Complete project feasibility including identification of works completed to date, payments made to builder and payments outstanding
  • Model the project cash flow with a reconciliation of Total Development Cost, Debt and Equity allocations
  • Site visit with Builder to agree current position, outstanding payments and strategy
  • Produce an Interim Funding Solution and a Cost to Complete Construction Funding Solution.

 

Results

  • Development Finance Partners secured an Interim (6 month) Funding ($2.5m)
  • The Offer was to make good all outstanding payments to the Builder and to fund the next two progress payments (this satisfied the Builder and works recommenced)
  • The Financing model identified the equity in the project and the underlying strength in the metrics of the proposal which will underpin a subsequent Construction Funding approval
  • The settlement of the Interim funding was  achieved in a period of 10 days from the Client approaching DFP

Leave a comment

Your email address will not be published. Required fields are marked *

For expert advice:

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

See all contact details >

Insight Categories /

Topics /

标签/

Share on Facebook
Facebook
Share on LinkedIn
Linkedin
Tweet about this on Twitter
Twitter