Project Type: Construction Finance
Loan Amount: $5,500,000
The Right Angle: 80% of Total Development Costs (“TDC”) with limited pre-sales.
Why Right Angle Group?
A ‘first time’ property developer was seeking to complete their first project which consisted of 8 residential dwellings.
What our client required:
- Client sought to commence construction immediately due to DA consent about to lapse.
- The client had only secured 2 qualifying pre-sales which was well below the minimum requirement for traditional bank funding.
What we achieved for our client:
- Sourced funding through one of our non-bank lenders who was comfortable with limited experience of client and minimal pre-sales.
- Lender accepted the uplift in land value and advanced 80% of the total development costs which allowed funding to commence without any additional equity contribution from the client.