The Brokerage was recently engaged by a long-term existing client who had signed a contract on a future development site that had already achieved development approval for 20 townhouses.
The borrower’s long-term objective is to develop the site and construct 20 townhouses, a 9-month ‘land bank’ term was required to obtain Development Approval.
The client wanted to maximise their leverage on the land to smoothen out their capital outlay and enable them to fund preliminary civil works.
The Brokerage was able to successfully negotiate a 70% LVR facility on the site for the 9-month term with all fees and interest being capitalised.
Loan Amount Total: $1,995,000
Gearing: 70% LVR
Lender: Private Lender
Interest Rate: 11.00%
Term: 9 months (6 months minimum interest)
To find out more about how we can help, contact our team today.
