DFP secured finance to acquire two strata units within 4 days at
a LVR of 137%.
Background
The borrower engaged with DFP to assist with the procurement of finance, to avoid no completion of the contract.
The client had engaged with a reputable valuer to undertake an on-completion valuation subject to two new leases being committed with fit-outs to commence following settlement. The issue, however, was that the client required maximum lending exposure to settle, given the growth of his other property portfolios.
The valuation was finalised and supported the clients' expectations, however, lenders needed to gain the comfort of the sponsor, the project and the on-completion valuation.
DFP worked closely with both lenders to mitigate concerns around the initial LVR position and on-completion position. Given the commercial nature of both lenders, they were in a position to assist and move quickly to meet and exceed the clients' expectations.
Location of Project
Illawarra Region, NSW
The subject property comprises twp strata titled units within a small complex with rear lane access to undercover parking. Ideally suitable for office or retail use, located close to the hospital and medical specialists and public transport links.
The Developer
The developer has undertaken many successful projects and has a decade of successful fit-out and development project works under his belt, which provided a level of comfort to the lenders. Also, an arm’s length lease was in place with the major tenant, which underpinned the valuation.
The Results
Fast and Flexible Commercial Acquisition Finance | 4 Day Turnaround
DFP was engaged to provide a quick and reliable funding solution.
Due to the time constraints, DFP engaged with a tried and tested 1st mortgage lender and also engaged with a 2nd mortgage lender who had previous experience with the client and was happy to support.
Timeframe:
- 23rd June – Received both 1st and 2nd mortgage letters of offer from the respective lenders
- 24th June – The client accepted and sign both letters of offer
- 27th June – Loan documents from 1st and 2nd lenders distributed to the clients’ solicitor for signing
- 28th June – Loan settled
DFP Delivered
DFP facilitated and maintained close contact with all parties, the client, his solicitor, and the 1st and 2nd mortgage lenders to ensure all parties were aligned to meet the tight deadline.
This was a complex deal, from navigating the extraordinary and complex LVRs, managing the valuation process, coordinating lenders and the documentation process and required the experience of the DFP team, so finance was efficiently managed and settled. A great team effort all the way around.
1st Mortgage:
- 90% on purchase price
- 60% of on-completion valuation
2nd Mortgage:
- 137% on purchase price
- 85% of on-completion valuation