October 2012 News
Funding Total Development Cost (TDC)
With tighter credit policies being implemented it refreshing to see our underwriters leading the way. DFP is currently funding projects up to 80% of TDC. In some circumstances DFP has facilitated funding up to 85% TDC.
Specifically we are looking at projects where the completed product is at entry point (between 300k to $550k), as a sale price, this price point continues to be aggressively supported by the First Home Buyers, SMSF’s that are looking to acquire a property in their portfolio, as well as Chinese investors.
If your development fits these criteria please contact the Sydney Director Baxter Gamble at email@example.com.
DFP Distressed Debt Workout
DFP was retained by secured and unsecured creditors including a Second Mortgagee to negotiate a highly sophisticated contractual mechanism to allow the Second Mortgagee to exercise power of sale, as the vendor, to complete several presale contracts. DFP’s innovative contractual mechanism was successfully negotiated by DFP directly with the Receiver Manager acting for the 1st Mortgagee which enables the 2nd Mortgagee to direct settlements proceeds and maintain the equity interest of both the secured and unsecured creditors.
As part of this process DFP raised several hundred thousand dollars to finish the development and pay the 1st Mortgagee’s unpaid arrears Land Tax and Rates to enable titles to be issued and complete the settlement of the presales contracts.
With debt funding and liquidity at its most difficult DFP is pleased to announce that it has recently secured funding for the refinance of 2 Commercial Office Buildings located in South East Qld and Sydney. DFP’s challenge, due to tightening Cap Rates was to facilitate a mortgage of 80% LVR of the value of the properties, some $31 million.
DFP facilitated the outcome using a combination of Senior and Mezzanine finance, which will allow the client to complete the refinance of the expiring mortgages and undertake some refurbishment to the buildings.
The Directors are pleased to welcome Stephen Turner as the Senior Associate Credit and Sales – NSW Office.
Stephen is well experienced in the financial services industry. He has held senior management positions in the corporate, business banking and property finance markets in a number of major institutions.
He managed the Specialised Mortgage Solutions business at St George Bank and built a substantial elevated risk portfolio with sound credit quality.
He has also gained a strong understanding of the non-conforming and Self-Managed Super Fund markets. He has the ability to understand the balance between credit risk and sales and strives to bring these two components together to provide lending solutions. Stephen can be contacted at firstname.lastname@example.org.
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
- Development Funding – What are the real property development costs involved?
- Navigate today’s commercial property market trends and overcome the pre-sales hurdle
- Our Domestic Credit Squeeze – The Perfect Storm and Opportunity for the RBA & Property Developers
- How property developers can thrive in a changing economy
- Development Finance Partners recognised as one of Australia’s most innovative and fastest growing companies