Residential Land Subdivision
$22M to refinance a Site Acquisition Facility and assist with the delivery of a residential development.
Our client had acquired a residential development site using a Site Acquisition Facility through a major domestic bank arranged by Ocian.
The client had since secured a DA, appointed a contractor, and extensively presold the development. However, the developer had offered reduced deposits to purchasers, which would not meet the usual requirements for financiers.
The client needed to refinance their maturing Site Acquisition Facility, fully fund the remaining cost of the development, and wanted to realise some of the value created through the planning and marketing efforts through an additional release of funding prior to starting construction.
Working with the client’s existing financier, Ocian secured a refinance of the Site Acquisition Facility and additional development funding.
Despite the reduced deposits under the presales, the financier was satisfied that our client had achieved sufficient presales to prove the market demand for the project, and to demonstrate an ability to repay the facility through settlements.
In addition to refinancing the existing Site Acquisition Facility and fully funding the balance of the development, the new arrangement provided an additional upfront drawdown to our client, returning half the equity they had contributed to the initial acquisition.
Our client will use the additional to complete pre-construction activities on another project, and to help secure an additional site prior to completion of this development.
