Development Finance Partners assisted a client with Subdivision Finance for their 15-Lot development project, navigating hurdles like council delays and contractor changes.
Development Finance Partners, (DFP,) was engaged to provide a development finance facility for a 15-Lot subdivision project, 50km Northwest of Sydney CBD.
DFP was initially engaged by the client over 12 months ago. However, the matter took a year to settle due to issues with access for on-site services, and delays with the local council in determining road access for those services.
The key issues of this proposal
The client experienced a few hurdles during the project lifecycle, which DFP needed to navigate when managing the finance facility:
1. Timeline delays with the local council
2. The right of easement issues for service providers
3. A change of civil contractor’s mid-stream
DFP's role
As development finance specialists, DFP believe that there is always a way to turn plans into reality.
To start the collaboration, the client provided DFP with an overview of their funding requirements. Together, both DFP and the client worked through a projected feasibility and funding cashflow timeline – something that was required to meet the objectives of the outgoing businesses partner.
Once a funding structure was outlined and agreed, DFP provided the client with proposed terms via its service agreement, who then formally engaged DFP under the service agreement.
Securing Finance
To start the finance process, DFP held several informal discussions with Capital underwriters to gauge their interest. A long time, and proven capital partner agreed to collaborate, so issued terms for DFP’s client.
To progress, DFP immediately prepared an executive summary for the Capital Underwriter, who subsequently issued an indicative loan approval which resulted in loan documents being prepared and executed by the client.
DFP maintained constant contact with both the client and the underwriter to keep the matter moving forward. The experience, knowledge, and relationships DFP hold meant that they could successfully manage the relationship with the Capital Partner given the constant delays outside of the clients control. The client was left delighted with the outstanding results delivered by the DFP team.
Finance Terms
Type: Senior Debt Loan
Loan amount: $3,600,000
Terms: 12 months