Dear Friends,
I am in the process of finding suitable finance for a $40M construction loan for a mixed use hotel, commercial and retail building in North QLD.
In the first stage, we will require $2.6M to settle the land. Currently there are a few residential dwellings on the land. DA approvals is expected to take 7-10 months to get done.
Then in the construction stage, we will require about $38M for the construction of the building. The good thing about this is that we are confident we can achieve 80% of pre-sale/pre-leases and 100% by the time construction is completed.
We have found the tricky part being the settlement of the land, where we are looking for a high LVR from a senior lender and a mezz funder/private equity to bring us up to 100% of the purchase price as possible.
Speaking to 5 banks so far I've had 2 banks who would not lend on the purchase, and on the other 3, the max I have so far is a 60% LVR loan.
Any advice on which bank i could go for a 70%+ LVR loan and any pointers on who i could talk to about the balance of the funding that would be much appreciated for the settlement.
Once DA is approved there will be no problems funding 100% of the construction costs.
I am in the process of finding suitable finance for a $40M construction loan for a mixed use hotel, commercial and retail building in North QLD.
In the first stage, we will require $2.6M to settle the land. Currently there are a few residential dwellings on the land. DA approvals is expected to take 7-10 months to get done.
Then in the construction stage, we will require about $38M for the construction of the building. The good thing about this is that we are confident we can achieve 80% of pre-sale/pre-leases and 100% by the time construction is completed.
We have found the tricky part being the settlement of the land, where we are looking for a high LVR from a senior lender and a mezz funder/private equity to bring us up to 100% of the purchase price as possible.
Speaking to 5 banks so far I've had 2 banks who would not lend on the purchase, and on the other 3, the max I have so far is a 60% LVR loan.
Any advice on which bank i could go for a 70%+ LVR loan and any pointers on who i could talk to about the balance of the funding that would be much appreciated for the settlement.
Once DA is approved there will be no problems funding 100% of the construction costs.