Development Finance Partners (DFP) was engaged by a repeat client to facilitate the funding for a construction and development project in Maroubra, NSW. The client aimed to build two high-quality, strata-titled luxury duplexes over two levels.
The project required a construction and development facility amounting to $5.35 million with a 12-month term. The client sought to undertake the development without the necessity of presales, intending to capitalise on higher sales values as the project neared completion.
The primary challenge was securing a construction loan that met the client's requirements of zero presales, which is uncommon in property development due to the increased financial risk. Additionally, the client needed to achieve a 79% Loan-to-Total Development Cost (LTDC) and a 65% Loan-to-Gross Realisation Value (LGRV).
DFP leveraged its long-standing relationships with capital partners to negotiate favourable terms for the client, and successfully secured a construction facility with a 79% LTDC and a 65% LGRV without the need for presales. This arrangement provided the client with the flexibility to maximise sales values closer to the completion of the development, aligning with the high quality and unique positioning of the duplexes.
Our strategic finance solution provided several benefits:
DFP's expertise and strong relationships with capital partners facilitated the successful funding of the Maroubra development project. By securing a construction facility with favourable terms, including zero presales, DFP enabled the client to achieve their development goals and maximise the project's financial success. This case study exemplifies DFP's commitment to providing tailored financial solutions that meet the unique needs of its clients in the property development sector.
Whatever the size of your development plan, DFP have a wealth of experience and strong relationships to help you succeed. Contact us to explore your tailored finance options.