Senior Land Bank Loan, Melbourne $12million
Development Finance Partners (DFP) were engaged to deliver a funding solution to fund a land bank acquisition in Melbourne. After working through a number of challenges a $12.100M loan at 65% LVR was delivered.
Development Site Purchase Funding Was Required
The client required us to finance the acquisition of a large development site in Melbourne, Victoria. The groups existing banking relationships were only willing to finance to a conservative LVR of 35%.
Key issues faced by the project included:
- Settlement date was eight (8) weeks from initial client contact;
- Site had no Development Approval; and
- Site had contamination issues that had yet to be quantified;
DF Partner’s Role
DFP were retained to provide advice and recommendations to assist with sourcing the finance for the purchase.
Working Closely With the Banks, DFP Delivered the Funding
- DFP formed a financing strategy to mitigate the environmental and zoning complexities of the subject site;
- DFP advised, arranged and settled a 65% senior land bank loan from an Institutional Fund Manager;
What the Client Says
“We chose to use DFP as our finance partner for this transaction as we felt confident they could deliver on a challenging funding proposition.
DFP procured an optimal LVR outcome for our land bank opportunity under a tight settlement timeframe.
We continue to work with DFP as they understand our business and continue to find innovative funding solutions for our capital requirements”
Nick Smedley, Managing Director, Steller
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