Case Study | 72 hour settlement for non DA approved Land Bank in Canberra for $2.1m.

The main challenge

The main challenge for this client was that the site was a purchase from the state government and an extension to settlement date was not available. DFP had three business days to achieve settlement in the midst of a COVID lockdown otherwise our client would have lost their deposit.

DFP's role

To support their client, DFP were retained to assist in financing the purchase of a site, by providing a land bank facility for 12 months to allow the client to achieve DA for the future development of a childcare centre and a townhouse offering.

DFP were advised on Friday June 25^th that settlement had to be effected on, or prior to June 30, in order to save the clients deposit and overall project work to date. This was because the State Government wouldn't allowing any extensions and issued a notice to complete.

By 10pm on Friday June 25, DFP had arranged finance approval and the issuance of mortgage documents to the client solicitors for execution and returning over the weekend. A NSW COVID lockdown situation meant that DFP had to arrange a Victorian solicitors office to certify the mortgage documents to allow settlement to proceed. This was all achieved between Friday night and Monday afternoon.

Monday morning saw the valuation inspection take place with the report issued same day, following which settlement was arranged and booked with all parties for Wednesday morning. Settlement took place smoothly, with DFP coordinating the settlement statement and cheque directions between a number of parties, and our client was able to complete under their contract.