Development Finance Options

Fellow Members,

I am part of a small syndicate that is undertaking an apartment development in Melbourne. Land has been settled and DA has been approved. We are starting to look at various funding options now and I would love to draw on the collective wisdom and experience of this forum.

"As is" and "Project related Site value" and "As If Complete" valuation has been completed by a major valuation firm that should be acceptable to all major lenders and the particulars are (all ex-GST):

Total GRV $15.2 M
Build Cost $8.2 M (turn key, fixed cost)
Loan required $10 M
Net Profit 18% (as calculated by valuer)

Based on above:
1) Who among the majors currently have an appetite for such deals?
2) Any potential second tier and non-bank lenders (including mezzanine if required)
3) Any offshore funding options

Regards and thanks in advance,
 
i ll be in same boat as you next year.. (no syndicate though)


this is what i have learnt so far.

Major 4 may not touch it
lender would want to see your previous experience
fat in a deal
Pre sales
Fixed price quote for builder
GRV and total cost

private funder will lend you 65% of GRV (ex/inc GST0
rate would be around 8% to 15%

Oc1 sent me a recommendation of private funder that does at around 8% (more upfront contribution by you)


i have one that does around 15%
(less upfront contribution by you)


just as side note: if you sell DA approved site.. what sort of profit wil you get?
what i am asking is, is it worhtwhile for you to develop?

feel free to PM me.. happy to share knowledge!
 
Back
Top