A DFP client sought assistance to acquire a vacant residential site with a pending 28-lot subdivision DA in the South Western Sydney Growth Corridor. DFP navigated various challenges to secure favourable financing for the acquisition.

Development Finance Partners, (DFP,) was engaged by its client to help them acquire a vacant residential site in the South Western Sydney Growth Corridor, upon which a DA was pending for a 28-lot subdivision. 

The key issue in sourcing funds 

The client had secured the site under a 12-month option agreement, which at the time of finance application, had then converted to a time-of-the-essence contract of sale. They required funding to 90% of the purchase price, justified by a value uplift from surrounding market improvements and a pending Development Application outcome. An eight-week settlement period was also required based on strict contractual terms.

DFP's role

Under a mandate from the client, DFP arranged for the property to be valued on both an ‘as is’ basis and, subject to Development Consent, the valuer subsequently confirmed two values.

Following this, a detailed credit submission was sent to our capital partner. A facility was geared to 65% of the valuation, and 90% of the purchase price was successfully negotiated on favorable terms.

Importantly for the client, the approval offered the flexibility of settling with or without the Development Consent. The consent ended up being confirmed before the settlement, reinforcing a higher property value which the capital partner lent against.

Finance Terms

Type: Site Acquisition  

Loan amount: $4,970,000

LVR: 65% of 'as is' value
         90% of purchase price

No matter the challenge, DFP have the experience and network to help you succeed with your site acquisition. Contact us to explore your tailored finance options further.



If you want to receive updates on finance and property news and insights, simply fill in your details below:

Related Posts