RESIDENTIAL PROPERTY DEVELOPMENTOur clients acquired a development site at one of Sydney’s top beaches under an option agreement for a delayed settlement. In the interim, our client obtained approval to construct four luxury apartments with a GRV of $25.49M.Our client presold three of the apartments with sale proceeds of $19.6M which would provide more that 100% debt cover for their proposed transaction. Our client had approached all the major banks, and they all declined the ‘Opportunity to Fund’ as they deemed the project too risky, given their view of the market and our clients apparent lack of experience in the luxury residential market.
Secured Capital Investments was successful in obtaining approval via a foreign bank, with local representation, for a facility of $13.45M for a period of 18 months – representing an LVR of 70% of TDC.
* Facility Amount: $13,443,000
* Rate: BB + 3.50%