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Case Study

Refinance of Completed Land Subdivision

About

$6M refinance of land subdivision development facilities.

Challenges

Our client had completed a semi-acreage land subdivision in regional Queensland. What they are now looking for is to refinance residual debt under a facility with sufficient terms and flexibility to allow a gradual selldown of the remaining lots.

Additionally, the client wanted to access additional funding to support the ongoing marketing program and some planning costs associated with the further development of a residual lot.

Solution

Ocian secured a Residual Stock Facility with a non-bank lender.

Results

We negotiated for our clients a 2-year arrangement to refinance the existing facility, provide the required additional funding, and capitalise interest over an extended selldown period.

This new facility had no sales milestones but had an option for the client to redirect part of the sales proceeds once a target Loan to Value Ratio had been achieved.

Additionally, no early repayment fees applied provided a minimum return was achieved by the lender over the facility term, equating to 3 months interest on the fully drawn facility.

As with all Ocian clients, we set out to maximise the value of their investments, and this client was able to secure a facility with competitive pricing and terms.

 

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