Commercial Site Acquisition
Initial site acquisition for Sydney commercial office project.
Acquiring site financing is one of the trickiest parts of any development. Our client’s site was being acquired prior to lodging their Development Application (DA).
The site while designated for commercial use but had no passing income. This meant that there was no yield to be gained from the acquisition.
A huge win for the client will be access to additional funding, by having the finance terms recognise the value uplift when the Stage 1 DA approval Is achieved.
Our client is an owner builder and plans to undertake construction of the project. It was also critical for no pre-leasing conditions prior to commencement of the future development.
Other requirements includea several-recourse between sponsors.
Ocian secured a stretched senior facility secured from reputable non-bank lender.
Ocian was able to secure an initial advance to assist with site acquisition prior to DA lodgement. Included in the terms was also recognition of site value uplift, that gave the client access to additional funding at Stage 1 DA approval.
The financial terms included flexibility to commence demolition and early works under preliminary approval, which helped the client’s development planning. The financing was secured with a 70% Loan to Value ratio for the project.
Our lender was also able to provide a commitment for future development finance for the client.
Ocian was able to keep our commitment to the client in help maximise value through the financing which was secured with competitive pricing and terms.
