A two week settlement was needed for a client, whose DA was for a 9-lot subdivision. At time of collaboration, their civil works contract was yet to be finalised. Even with a few hurdles, DFP secured finance.
An urgent proposal was referred to DFP by a referral partner.
A borrower who needed sub-division finance, engaged DFP after experiencing significant time delays with their principal financier. The client had good experience in the sub division of sites, with many successful developments and a strong pipeline of future projects.
DFP subsequently undertook its due diligence in order to provide a finance proposal which supported the capital underwriters terms.
After finance terms were provided, an issue appeared around the timing of settlement on the land component. However, DFP managed to negotiate staged terms with its capital partner for staged funding.
Stage 1 - this allowed the client to secure the land purchase within two weeks.
Stage 2 - allowing for the sub division work to follow, providing that civil work costs were assessed prior to moving into the construction facility.
A good level of pre-sales was to go into the eventual sub-division construction facility, which underpins the strength of the proposed civil works sub division facility.
DFP quickly arranged a subdivision facility for $1.9m within 2 weeks of engaging the capital partner to settle the land component. Today, final aspects of the sub division civil works facility are being finalised for the next facility.
- Type: Subdivision finance
- Loan amount: $1,907,500
- LVR: 70% on 'as is' land value
- Term: 12 months (minimum 3 months)