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.
Could your next project benefit from some expert development finance? Get in touch.
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
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