Construction Loan – Mixed-use Building
1 May 2021
Commercial & Residential Mixed-Use Building
The Brokerage arranged funding for an existing client to develop a mixed use building, comprising ground floor commercial tenancies and 70 residential units above.
When we were mandated to seek funding for site acquisition and construction finance, the site was under option although had DA and a small amount of presales.
Funding was provided in 3 tranches, with the first tranche being for site acquisition. Construction funding was approved to drawdown with an initial 45% presale coverage and then a 3rd tranche was made available to drawdown and repay some developers equity once 68% presale coverage was achieved.
Overall, The Brokerage was also able to secure a highly favourable gearing level of 93% against the actual total development costs.
|65% and 93% TDC