SOUTH EASTERN SUBURBS, VICTORIA

Small Land Subdivision of 23 lots

Bank withdrew funding, permit not approved due to minor technicalities, leaving the owner to sell at a loss

Solution:

ACMF suggested a structured finance proposal, with additional 6 months buffer as the permits had to be resubmitted due to design changes.
Additional funding was made available on a “standby” basis of up to $500k to cover costs due to Permit delays from its own Group Balance sheet;
Allowed the sales agent to promote the sale to advertise finance is now in place with an estimated construction start date. This allowed for early sales to occur with buyer completion certainty;

Result:

Permit was granted 18 months later than expected however construction works started immediately after the DA was issued to create market certainty to both the project and completion date expectation;
The original financier pulled out due to the 2 year time frame and DA uncertainty, ACMF provided the working capital up to $500k, later with a short term loan to complete the project;
Buyer certainty created a successful sales campaign, client ended up with a reasonable profit margin, compared to a loss if sold.