Senior Land Bank Loan 120% of purchase price, Newcastle $5.45 million

Senior Land Bank Loan 120% of purchase price, Newcastle $5.45 million

Development Finance Partners (DFP) was engaged to provide a funding solution for a land bank acquisition in Medowie NSW.

DFP arranged and settled a 12 month land bank facility, representing 120% of the purchase price and 65% Loan to Value Ratio, was delivered.

THE KEY ISSUES FACED BY THIS SITE ACQUISITION

  • During the period of the land purchase contract the Client had obtained both a rezone and DA for a 235 lot manufactured housing estate “MHE” development.
  • Financing against a $13.5M As Is valuation and not the $4.5M purchase price.
  • Specialised security as the DA was for MHE and not residential

 

DF PARTNER’S ROLE

DFP were retained to advice the client on optimising the debt and equity structure of the capital to increase the return on equity by financing against the soft equity created by the client achieving a Rezone and DA by settlement for a specialised security.

In submitting and then promoting the transaction to its Capital Partners, DFP undertook a detailed assessment of the whole of life development programme and staging model, and real estate fundamentals and the overall credit worthiness of the proposal.

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