Acquisition of Land Subdivision Site
$10M to assist with the acquisition of a site for residential land subdivision.
Our client had exchanged contracts for the acquisition of a vacant parcel of residentially zoned land. The tricky thing was that the site did not produce any income and Development Approval (DA) was not expected until after settlement.
The client also intended to pursue a reduced deposit pre-sale campaign, which would appeal to first home buyers but does not meet normal bank qualifying requirements.
The main requirement from the client was that they wanted to work with a lender who would be prepared to roll into a construction facility once DA and an appropriate level of pre-sales had been achieved.
Ocian secured a Site Acquisition Facility through a major bank.
The Site Acquisition Facility provided our client with a comfortable timeframe to achieve DA and pre-sales. We also achieved a good level of leverage on acquisition based on the development potential of the site.
We pride ourselves in helping clients get the most from their investment. Through our assistance, the facility was secured through a competitive process driving a strong pricing outcome for the client.
Another win we achieved for the client is the financier also provided terms for a refinance on achieving DA, which would return part of the equity contributed to the acquisition and finance all remaining development costs.