Site finance to settle on development site plus construction finance secured 8 weeks later.
DFP assisted our client in settling their next development site, which they had under a put and call option for eight months prior, while achieving planning and approvals.
DFP assisted by obtaining and executing loan terms to settle the site while the building contract and BA was being negotiated and finalised.
As the site had been under contract for some time, the valuation for the settlement actually saw an increase of $200,000 from the contract price which the lender was then able to use as the land value due to the client’s added equity from achieving DA.
Two months later with the final contract and approvals in place DFP managed the process to have the QS report completed and approval for the increase of the facility with the same lender by $2 million to begin progress drawdowns for all construction costs, professional and statutory fees associated with the construction and delivery of the project.
- Finance: Land settled at 65% LVR based on uplifted land value, increased from contract price with DA in place
- Loan amount: $1,397,500
- Term: Up to 12 months as required
- Finance: Construction facility increase to 75% LVR of Gross Realisation
- Loan amount: Land & construction $3,785,000
- Term: 12 months
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