A client needed urgent funding after discovering their financier couldn't help them. Without it, their entire project would be compromised.
Background:
A previous client quickly called upon DFP after learning that their financier couldn't help them with an urgent 2-week settlement turnaround. Their overall strategic acquisition strategy involved them settling on a specific property, in order to progress with their future development plans. So, it was critical that they sourced funding in this short period of time. As we’ve worked with this client before, they knew we had the knowledge and network to help them succeed.
Our task:
The timing of the property purchase settlement was critical as the vendor would not extend terms beyond the contract period. On top of this, our client was under notice to complete, which placed this acquisition and the overall property development opportunity at risk.
The result:
DFP raised time concerns early with the capital underwriter, allowing us to implement a strategy which ensured settlement was achieved in the required timeframe.
We were able to provide a finance proposal supported by the capital underwriters’ terms, and arrange for an urgent property acquisition loan to settle within 2 weeks.
During this timeframe, DFP:
- Arranged for the underwriter to visit the site personally
- Agreed to issue terms and urgent documentation, letting our client secure the facilities needed and achieve their required outcome.
Finance Terms
- Type: Property acquisition finance
- Loan amount: $2,400,000
- LVR: 65% on “as is” land Value
- Term: 6 months (min 3 months)
The developer:
The developer has a proven track record and a strong portfolio of successful projects. They’ve always maintained contact with DFP following previous successful transactions.