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Refinance DA approved land loan
The Challenge
Our client achieved a DA on the subject site but received strong advice post approval from town planners that they would be able to resubmit DA and achieve a higher density. We had to move quickly to refinance the existing lender who had delayed providing terms on loan extentsion, and when provided were not acceptable to the borrower.
Our Strategy
Recongnise the uplift in land value from DA and overall improved credit risk which enabled a more competitive offer than existing lender
Provided an additional 12mths pre-paid interest within the LVR to allow time to achieve approval for increased density
Fast approval and documentation to enable refinance prior to incurring unnecessary costs from existing lender
Refinance to construction facility on increased density once DA finalised
The Outcome
Client was able to move away from previous lender seamlessly and save on finance costs
Client was able to relodge DA for an improved project
What made it a good credit risk?
Strong borrower with proven record in developing similar projects
Strong Asset position of the borrower
2 separate securities including a high quality residential dwelling
Multiple exits - refinance to construction, refinance land loan, sale of one asset.
As Is' Valuation
$4,000,000
Development Site
$10,000,000
Residential Property
Loan
$4,655,000
LVR
61%
Target Investor IRR
9.56%
Location
South East QLD
Additional $3,950,000- loan secured by residential property
