balmain + commercial + big deals +
Land Subdivision
August 09
| purpose | To fund the construction of a 19 lot subdivision with no pre sales. |
| loan limit | $2,850,000 |
| lvr | 70% of the Gross Realisation Value |
| loan term | 12 months |
| facility type | Construction facility with additional interest component after construction |
| interest rate | 12.75% |
After being turned away by 4 lenders the borrower came to Balmain seeking construction funding for a 19 lot subdivision project in Brisbane. The developer ideally wanted to start the project without the requirement for pre-sales to overcome delays in starting the project.
Within 3 weeks Balmain was able to arrange a highly geared, 70% of gross realisation facility with no presales which enabled the developer to get started straight away. The development has now begun and there are expressions of interest on 3 of the lots within the 1st week at prices above valuation.
Our client being an experienced developer was satisfied with the level of gearing and not having to arrange presales at discounted prices which are difficult to achieve on proposed subdivision sites. Sufficient interest has also been built into the facility for 12 months to alleviate having to service any residual debt.
balmain + commercial + big deals +
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