Regional Seniors Living Development
Site acquisition and development finance for Southern Highlands’ over 55’s project.
Each development project comes with its own set of challenges. One of the primary challenges for this client was the tight timeframe for settlement of the site acquisition.
Our client is an owner-builder and relies on raising sufficient capital for each project. This meant that they were seeking a higher Loan to Value Ratio to maximise return on their equity.
There were no pre-sales before the commencement of the project. The client also held the development approval, but the construction certificate was only expected 3 months after settlement.
Ocian secured a stretched senior facility secured from a reputable non-bank lender.
One of the achievements for this client’s project was the leverage secured at 90% Loan To Cost. This itself freed up a lot of equity for the client on other projects and construction cashflow.
Ocian assisted in securing the terms for no pre-sales required until the project is completed with a term buffer to allow for selldown.
We were able to secure an initial advance to assist with site acquisition before the Construction Certificate and commencement of the project in approximately 3 months.
Our promise to clients is to maximise the returns and we have achieved that with competitive pricing and terms with no line-fee charged. This enabled the client to access credit for the property and deliver on the outcomes of the project with peace of mind.