INNER SUBURBS, MELBOURNE, VICTORIA

Quality bank client requiring urgent capital to complete their development

Premium Bank client urgently needed funding to complete a project due to cost overruns and for them to secure another site that required settlement. Bank would only fund after the settlement of the current development, as most lenders do not lend on partially completed developments.

Solution:

We offered them a short term loan to complete the project, our loan secured by way of unregistered 2nd Mortgage (after DD was completed confirming debt limits).
Security across private residence and development site (overall, circa 70% LVR on completion);
Project Manager reported fortnightly to ACMF as well as the bank;
2 Sales underwritten at an off market discount, thereby not jeapodising the valuations as a precaution.

Result:

Secured additional property.
Completed the project in a timely manner.
ACMF pre sale not called upon as the market strength allowed the owner to focus on new buyers.
Higher sales result than budget upon completion with buyer certainty.