DFP was engaged to provide a funding solution for a pre-DA Land Bank acquisition for a future 35 luxury apartment development site.
The site was an original off market property purchase some circa 12-18 months prior under option contract. During the option period, the site appreciated significantly in value and our client sought to leverage against the appreciated valuation amount to settlement to purchase.
DFP were retained to advise the client on funding strategies to procure a landbank facility minimising cash equity requirement. In submitting and then promoting the transaction to its Capital Partners, DFP undertook a detailed assessment of the real estate fundamentals, the planning issues, and the overall credit worthiness of the proposal including its sponsors.
Thereafter, DFP coordinated and lead several lender discussions and negotiations with its Capital Partners, culminating in a credit approval and successful settlement of the transaction during July 2023.
The funding was structured with time buffers to accommodate the Development and Construction Approvals, including a presales campaign, and included an interest and fees capitalisation facility linked to that timetable.
About the developer
Our client is an experienced developer with 20 years plus development and project management experience in the NSW regional ResDev sector. DFP is retained by this customer on several other of its regional developments, both South and North of Sydney.
Type: Landbank Finance
Loan amount: $6,700,000
Term: 12 months with a 6-month minimum term