Development Finance Partners (DFP) were engaged by a borrower to obtain settlement finance to assist with the purchase of a future development site in Austral, NSW.
The project involved a rollover and increase of the land finance for a future development site located at 460 Fourth Ave Austral NSW. The client has since achieved a DA for the development and procured a new valuation to include the increase in value against the new DA.
DFP's role:
DFP were retained to successfully negotiate terms with the financier to extend the existing land facility. This enabled the developer to achieve final permits and move into the construction phase within the next 6-12 months. The facility was able to be increased to capitalise the additional interest for this term based on the uplifted land value.
Development Finance Partners also negotiated a 6 month minimum term to ensure the costs are maintained when the client is ready to move into the development finance.
On completion the property is proposed to be developed as a Torrens Title land subdivision of 44 lots.
About the developer:
Our client is a seasoned developer who provides project management, consulting in land development, and advisory consultation on projects within Austral and the Sydney Region.
Finance Terms
Type: Rollover of Land Finance
Loan amount: $8,750,000
LVR: 70% of DA approved land value
Term: Additional 12 months with a 6 month minimum term.