PREMIUM OUTER SYDNEY, NSW
Premium Bank client, not a developer however had quality consultants managing the project wanting to convert a parcel of premium land held into high end residential development. Although they owned the land for many years operated as a market garden, the owner was retiring wanting to capitalise on the demand on a tightly held sort after location, the problem for the bank was simply the client was not a developer, although debt free, working capital was required, then funding to complete.
Client engaged a professionally experienced Project Management firm to carry out the Planning Permit approval (Development Approval often referred to as “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;
No presales required;
Client took advantage of the market by marketing the land as home and land
Pre sold 6 lots at record pricing with balance released after completion.
Great sales result by being able to negotiate terms to suit the buyer yet de-risked for the investor lender by introducing a high quality project managing firm to manage and oversee report back each month.