Senior Debt loan $3m for Land Bank Acquisition at 65% of Purchase Price Mornington Peninsula

Development Finance Partners (DFP) was engaged to provide a funding solution for a land bank acquisition with development potential in Mornington Peninsula VIC. DFP arranged and settled a 12-month land bank facility for $3m, representing 65% of the purchase price.   The key issues faced by this site acquisition

• The client contracted to purchase the site in April 2018.
• The client has supported major banks in the past however, when it came crunch time to settle on this parcel, credit conditions across the majors had tightened and this proved difficult to settle the transaction.
• The other issue was valuation