Property Developers Secure Flexible Funding for Land Subdivision with PMA Based on ‘As If Complete’ Valuation
Scenario
The borrowers are seasoned property investors and developers with a solid track record of successfully subdividing and selling land parcels. They secured a loan to refinance existing debt, fund initial site works, unlock equity for subdivision, and lodge a formal Development Application (DA) for their current project.
The loan is secured by 28.41 hectares of rural land held across three titles, planned for subdivision into five residential lots for future residential development.
Why PMA?
While the borrowers qualified for traditional bank finance, they chose PMA for its quicker settlement times and flexible lending solutions specifically designed for property development projects.
PMA Solution
We were able to get an "as if complete" valuation report and lend enough funds for the client to refinance his current debt and cash out for the subdivision process.
Details
Loan Amount: $771,000 (First Mortgage)
Property Value: $1,500,000
LVR: 51.40%
Term: 12 months prepaid plus 3 monthly extensions
Exit
The planned exit strategy is to subdivide the land into five separate residential lots and sell each one individually to repay the loan.
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