When it comes to getting an “out of the box” development project underway, most would say in the current climate that it should be relegated to the “too hard basket”.
When Melbourne based developer Steller Group came across an older style office building with plans for a future residential development in Cheltenham Victoria and a complex borrowing group they knew who to turn to for funding.
Development Finance Partners have proven previously that they weren’t afraid to take on a challenge.
“DFP have direct access to a number of specialist Lenders that will consider deals that are a little ‘out of the box’. The team were understanding when it came to some revisions we had to make to the borrowing entity, as well as the challenging nature of the tenancy agreements over the property.
The property acquisition was set on bank-like terms and within the time frames the Vendor had sought.”
Nicholas Smedley, Steller Group
The Smedley group engaged the business to advise on, and secure funding for the project.
An innovative solution was required as the site did not have development approval for the proposed ultimate residential development use, and the lease agreement providing the holding income was from a related party to the borrowing group. For planning reasons, the borrowing entity was changed several times since the original contract was signed, and time frames were becoming compressed.
DFP helped the client with deal structuring to mitigate the issues above with the site, its valuation, and the related-party lease. Funding was secured on terms agreeable to the client, and settlement was effected promptly.
If you have a complex project that need’s expert innovative thinking to help turn your plans into reality, consider working with a specialist finance advisory firm such as Development Finance Partners.
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