Our client had owned and operated out of an industrial property located in inner Sydney. The immediate surrounding area was rezoned to a high density residential area.
Our client was not a property developer but wanted to develop his site in to a 110 residential apartments on the site and came to us for advise at an early stage.
The first step was arranging a land bank facility to cover the preliminary costs of the project such as marketing, DA, professional fees, etc
We worked with our client through the entire process including preliminary design, marketing, pre sales, and builder selection.
When the project feasibility was finalised by the valuer and QS our client needed circa 92% of costs. Pre-sales were strong however there was still a short $10M of the required level.Solution
There were a range of challenges which had to be overcome in order for us to successfully complete the project:Equity shortfall
Pre-sale shortfall
No Previous Development Experience
Senior Debt
Our client was an overseas developer who purchased a development site in Sydney metro. (70 apartments over 7 levels and 3 levels basement).
Although having an experienced team, this was their first time undertaking a large-scale development in Australia.
Given the minimal presales our client had, lack of local development experience, and non-arms length building contract, no major bank would provide funding.
Solution
We provided a equity joint venture finance facility as follows:
We were approached by a developer based in NSW who came to us with an opportunity. All his funds were tied up in other projects and he needed our help.
What we did was fund 100% of the project and the client didn’t have to put up any collateral.
The developer was looking for a joint venture partner as he did not want to sell the project.
Solution
What provided an equity joint venture funding facility which financed 100% of the project and the client didn’t have to sell or refinance any of his other holdings.
A client came to us with a large land holding the family had owned for decades.
They had no experience in development and were looking to build something and turn what they owned into something worth considerably more.
After meeting them they were looking for a partner with expertise in development and build something together.
Solution
We participated with an equity joint venture funding structure and successfully completed the project. We have since developed a very worthwhile and profitable relationship with the family and are continuing to work together on other projects.
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