Experienced developers with a sound track record are increasingly looking to alternative solutions to get their developments out of the ground.
Baxter Gamble, Director of Development Finance Partners (DFP) says that DFP are consistently seeing great projects being delayed or put on hold as banks tighten funding.
Alasdair Baker from Omira Property Group, recently had his bank refuse him finance for a 5 townhouse project in a well-established Brisbane suburb due to a lack of pre-sales, and as such turned to DFP for an alternative solution.
Mr Baker had limited time to secure the site and commence construction if funding wasn’t obtained.
“We needed finance with no presale requirements and that is exactly what we got. Our project would not be coming out of the ground as we speak if we had gone the traditional major bank route and delays cost money and potentially even the whole project. Essentially the funds DFP have arranged have allowed us to get started and in turn finish quicker which is a key to delivering a successful project,” Mr Baker said.
DFP were engaged to provide a funding solution to both acquire the site and complete the construction funding. Given the tight time lines a funding approval was urgently required.
DFP were able to source an Indicative Approval (subject to valuation) within a week of being approached by the client.
Mr Baker is now getting construction underway thanks to choosing the right finance partner.
“I have worked with the Directors of DFP on the very first development project I ever undertook. When looking for a sound finance partner on this current project I decided to partner with DFP again to ensure our project had the best chance of getting off the ground.
"The DFP team have been in the industry for a very long time and have an in depth knowledge of what it takes to get the right finance package together to get a project going. They also have a very extensive database of good industry contacts and were able to work with us to ensure the right parties came together to get the funding we required.”
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