Property Purchase For Future Development- Henley Brook, WA
The Borrowers have backgrounds in project development. They are involved in property renovation, plumbing and maintenance and are registered with Master Builders.
The purpose of this loan is to complete the purchase of a vacant block of land for future development into a 40 lot subdivision.
The Borrowers can’t get bank finance as their current bank has requested presales.
Security on offer is the residential development site in Henley Brook, WA. The property is a 2.08ha vacant block of land which was purchased in July 2022. The Borrowers are expecting approval in the next couple of months and will then begin selling the lots.
The exit strategy is to refinance out once presales of the subdivided blocks are finalised.
This loan has a 4 month pre-paid loan term, with the option for 3 monthly extensions.
Details
Security Property Valuation: $2,500,000
Loan Amount: $1,625,000 (First Mortgage)
LVR: 65%
Term: 4 months prepaid plus 3 monthly extensions
