Construction Loans & Development Finance

By Author: Globalcapital
Total Articles: 2
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No two construction loans are ever the same and hence require individual financing solutions. GCC specialise in professionally packaging development loans to lenders in the best format resulting in successfully securing your clients development finance requirements.

GCC offers the following development finance facilities:
TDC : Total Development Cost based facilities (Institutional Lenders)
GVR : Gross Realisable Value based facilities (Private Lenders)
Mezzanine finance
Equity participation
Land bank facilities
Take-out facilities
Introduction to Joint Venture Partners

Residential Development Loan - Lite Doc - Private Lender

Our clients are a family which inherited a residential property on the harbor of Sydney's Inner West. Since then they bought the adjoining property and obtained development approval for 11 residential units which would yield an expected end value of $15.5M (Ex GST). The clients have no previous property development experience.

There are several beneficiaries ...
... in the family consortium and the plan is to hold on to 6 units and sell the remaining 5 units ($8.75M) at completion. As such there are no presales available.

Solution:

GCC was successful in obtaining construction finance approval via a private non-bank lender for a facility of $10.45M for a period of 18 months representing an LVR of 67.50% of GRV.

This enabled refinance of the existing land facility and provided a construction loan to enable completion of the development with no presales or financials required.

Loan Amount: $10,450,000
LVR: 65% of GRV
Interest Rate: 11.50% pa
The process is simple, send in the attached development finance enquiry form and we do the rest.

Use our business to ensure delivery of construction finance solutions to your client. Contact broker@globalcapital.com.au today