1 February 2020
Two-stage Residential development
The Brokerage was engaged by an existing client to negotiate pre-sale requirements on a construction facility for a large, two stage residential development in Brisbane’s north.
Before discussions began, the facility required individual pre-sale targets for each stage.
Against a tightened credit environment, The Brokerage was able to negotiate with a major lender that the pre-sale requirements be merged into an in one-line figure across both stages of the development whilst maintaining individual funding tables for each stage. The process added value to the client by allowing construction to commence sooner and deliver a finished product to the market, in a time when selling off the plan is increasingly difficult. The revised pre-sales requirement has a debt coverage equal to 53%.