DFP has a proven track record of arranging finance in the form “Land Bank Loans” to assist with the settlement of land in various stages of zoning and DA approvals.
During the Land Bank Loan term the Borrower/Property Developer is typically focused on de-risking the project by finalising all necessary remaining design, zoning and development/construction consents and approvals, marketing and obtaining presales, procuring a construction contract and obtaining construction finance approvals.
The repayment of a Land Bank loan is typically achieved through the initial settlement of the construction finance. In many cases DFP have also arranged the construction finance to settle a land bank loan, providing an end to end solution.
Land Bank loan interest rates, LVR’s, terms, and serviceability requirements can all be tailored to meet the individual requirements of the borrower and the level of risk
The Benefits of Land Bank of Funding
- Funding can be provided without a DA
- Pre-sales aren’t required in most cases
- Gives the developer time to get ready for the construction phase (e.g. obtaining DA’s, building approvals and pre-sales if necessary)
Key examples of successful land bank funding solutions that Development Finance Partners have provided are:
- Senior Land Bank Loan for 100% of Purchase Price , Sydney $20 million
- Senior Land Bank Loan, Melbourne, $12 million
- Urgent Funding To Complete Active Development Project
- Helping A Developer Overcome Construction funding Hurdles For A Staged Residential Land Subdivision
What our clients say about our Land Bank Funding Solutions
“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
“This was a particularly difficult land settlement. It was a very complicated purchase structure with a lot of moving parts. DFP got it done in 6 days including valuation and land settlement. I chose to work with DFP again as I knew that they were one of the few finance partners who could navigate the complexities of the project and could leverage their existing network of contacts to get the result I needed.”
ARH Warriwood Pty Ltd
Case StudiesCASE STUDY:
When banks tighten their credit conditions, how do you ease the pressure?
Senior Debt loan $3m for Land Bank Acquisition at 65% of Purchase Price Mornington Peninsula
Urgent funding to complete active development project transaction – Warriewood, NSW
Urgent funding of $1,140,000 to assist with equity release against existing commercial sites – Ascot Vale, VIC
Senior Land Bank Loan 100% of purchase price, Sydney $20 million
Land and construction funding for 16 residential villas in Shoalhaven NSW
Securing Development Funding Pre-DA On A Complex Project in Cheltenham, VIC
Senior Land Bank Loan, Melbourne $12million
Land Bank then Construction Funding – Luxury Home, Sunshine Coast
Helping a Melbourne Developer Overcome Construction Funding Hurdles for A Staged Residential Land Subdivision
Fast funding for land bank development in Western Sydney (finance offer within 4 days)
Land Bank – ($11.5m facility settled in 21 days)