No presales finance, 70% LVR, Suburban Melbourne
Development Finance Partners (DFP) was engaged by its builder/developer client to procure funding for a 4 level, 8 apartment project to be constructed in suburban Melbourne.
THE KEY ISSUE IN SOURCING FUNDS
The client was seeking a competitive funding package with no presales, where the client’s building company was also to be the head contractor. While the scope of the build was relatively small (8 apartments, 4 floors) the site itself was also not ideal with access issues needing to be mitigated and addressed. The gearing sought was also on a stretched basis, with the client seeking up to 70% LVR.
DFP coordinated a competitive finance tender program resulting in a number of lenders providing indicative terms. This showed the client the depth of DFP’s network of lenders given the multiple offers received and the very sharp pricing offered.
Presented with a number of competitive offers, DFP advised the client through the individual terms of each and provided its recommendation with regards to lender ultimately selected to proceed with.
The approved terms allowed for the client to commence construction within weeks on a no presale basis and up to 70% LVR.
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