1st mortgage facility to assist with settlement for site acquisition and subsequent funding to complete the development.
Project Background
DFP assisted our client with the land purchase of a 3,281 sqm site plus provide development funding for a 12 lot residential subdivision development.
Location of Site:
This site is positioned 400 metres to Toogoom Beach. Toogoom is a beautiful beachside community a short 15 minute drive to the city of Hervey Bay, QLD.
On completion the development will provide 12 quality level residential blocks ranging from 628 - 1,064 sqm, set in an established community.
The Developer
The developers have worked in the construction and development industry their whole careers and have previously completed smaller sized builds, however, this project is the first of this size and scale they were undertaking.
The assistance of DFP in arranging their first ‘construction finance’ facility in their development entity has been beneficial in setting them up with appropriate finance for this project, requiring as little cash equity as possible and assisting in leading into their next site purchase.
DFP's Role:
DFP was engaged by the borrower to obtain settlement and development finance to assist with the purchase and subsequent civil works and infrastructure costs associated with the completion of approved 12 lot residential land subdivision at Toogoom QLD
The client sought an increased LVR on purchase price as they believed there had been market uplift in the site, the valuation undertaken for the finance returned an ‘as is’ assessment of the land at over $300,000 above purchase price with the benefit of the development approval.
The Results
Land Settlement & Development Funding
DFP was then able to successfully negotiate terms with a preferred capital partner and was able to deliver the result sought by the client to achieve an LVR of 88% of purchase price (70% of valuation) reducing the clients required equity contribution at settlement significantly.
The facility also then allowed for funding for civil works and infrastructure charges to a maximum LVR of 65% of the on-completion value of the project which 100% funded development costs and provided for capitalised interest and costs without further equity contribution required by the developer.
- Loan amount: $1,705,000
- Term: 12 months
- Land settlement finance at 88% LVR of the purchase price
- Development finance at 65% of the GRV on completion
Chat with us today to find out about timely and flexible finance option for your development project.