OUTER SYDNEY, NSW
Premium Bank client wanting to convert land held into high end residential development but was not a developer. Although they owned the land for many years wanting to capitalise on the upside of the Sydney market, the problem for the bank was simply the client was not a developer, although debt free, working capital was required.
Client engaged a professionally experienced Project Management firm to carry out the land DA.
Provided working capital in stages as follows:
- Working capital for a DA
- Project Marketing and related costs
- Prepaid interest in stages with offset account
- Construction finance upon achieving a DA
- No other security up to 50% LVR
Client took advantage of the market by marketing after the construction started.
Pre sold 6 lots, with balance released after completion.
Great sales result by being able to negotiate terms to suit the buyer.