Landmark Project in Melbourne, VICTORIA
Medium Density Residential Development (Settled in 10 days)
- 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.
- 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.
- 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
Could your next project benefit from some expert development finance? Get in touch.
For expert advice:
Level 3, 31 Alfred St
Sydney NSW 2000
P / 02 8916 6246
Level 30/35 Collins Street,
Melbourne VIC 3000
P/ 03 8692 0082
Level 18, 175 Eagle Street
Brisbane QLD 4001
P / 07 3041 4136
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