The Borrower has a background in property development and has completed several projects in NSW. They required funding to refinance and consolidate debts with other private lenders. The Borrower is developing 22.08 hectares of land for residential subdivision in Tweed Heads South on the north coast of NSW valued at $6,500,000. The property is part of a larger NSW State Government planning approval to subdivide the existing parcel of land into 156 residential lots across 15 stages. The approval does not have an expiry date and has met commencement requirements with Stages 1 to 7 having been substantially completed. Our security
property comprises stages 8 to 15 and includes 73 residential lots. Of the 73 residential lots 70 of them range between 536msq – 2,947msq and the other three ‘superlots’ range between 5,216msq to 9,816msq.
The Borrower was unable to obtain bank finance due to past default judgement against the director. He was declared bankrupt due to a business venture he had at the time of global financial crisis, however he was discharged shortly after. The borrowing company has a clear CRA record.
Private Mortgages Australia was able to lend $4,225,000 at a 65% LVR. The loan has capitalised interest for three months plus three monthly extensions.
The Borrowers exit strategy is to immediately proceed with subdivision of Stage 14 comprising the three ‘super lots’ which should be achieved within two months. These lots are presold with settlement due within 14 days of titles being issued and full proceeds will be used to reduce debt which should align with end of the prepaid period.
“We appreciate all the efforts, in difficult and challenging circumstances. Your professional approach and ability to get the deal done has been much appreciated by all.”
Simone – Property Developer, Gold Coast