balmain + commercial + big deals + june 2008
Site purchase which preserved client equity
June 2008
| purpose | To provide funds up to 65% LVR for the purchase of a 3.4h englobo site. |
| loan limit | $2,275,000 |
| lvr | 65% |
| loan term | 6 months |
| facility type | Funds drawn-down in full on settlement of the loan. |
The client had secured an option over the land 12 months prior to settlement at the agreed purchase price of $2,500,000.
Balmain Commercial settled the $2,275,000 loan against the assessed higher valuation figure of $3,500,000 which resulted in a loan facility that was 91% of purchase price.
This preserved the client’s equity enabling them to contribute funds towards development approvals, which are now in place. It has resulted in a significant value add for the client given the material change of use nature of the Development Application.
Balmain Commercial has now been re-engaged to deliver a $30,000,000 construction facility that will provide for retail showroom uses on the site. The accelerated land value means the client will not be compelled to contribute any further equity toward the development of this project.
balmain + commercial + big deals + june 2008
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