The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
FULL PROGRAM RELEASED FOR URBANITY-25 CONNECTING PROPERTY LEADERS ACROSS THE ASIA PACIFIC
FULL PROGRAM RELEASED FOR URBANITY-25 WHERE THE PROPERTY INDUSTRY CONNECTS
VIEW FULL AGENDADETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
1
print
Print
OtherStaff WriterTue 31 Mar 15

How Sound Advice Helped A NSW Developer Overcome Funding Hurdles

1

The Developer’s Situation
A property developer based in the South Coast region of NSW was having difficulty securing funding for a development in the Shoalhaven region.  The DA approved site was for 16 residential strata villas and a café.  The villas are “tourist” short stay, pursuant to the zoning, which is SP3 Tourism.

After initially seeking bank funding the developer was faced with a stalled project when the bank had issues, mostly related to the “short stay” nature of the zoning.

Having come across Development Finance Partners (DFP) via LinkedIn, a meeting was arranged and DFP were engaged to expedite a funding solution that met the client’s requirements.

DFP recommended the client order a commercial arm’s length valuation which would provide definite project feasibility numbers to work by, and which would provide support for the development.  DFP recommended a valuation firm that was well recognised and on the panel of a wide range of lending institutions.  The valuation confirmed what the developer had already identified through his own research, that the South Coast region had a shortage of short stay accommodation within close proximity to the beach.

DFP were able to source private funding and following a review of the valuation and the completion of due diligence were able to produce a land bank funding proposal in the first instance which would be subsequently refinanced by a construction facility.

The Outcome


DFP completed a funding proposal for a land bank facility for six months. This enabled the developer to secure the site, commence preliminary works and marketing to enable presales to underpin a construction facility.  Once this was achieved, the subsequent refinance into a construction facility would be underpinned by evidence of a market for the end product (of which there was a shortage of stock in this location).

DFP secured an offer for funding of the site within one week of receipt of the valuation and settlement has now been completed.

The developer, Tom Bishop, said, “Thanks to Development Finance Partners our project has secured funding in a regional area zoned for tourist use. To date DFP have been nothing short of a pleasure to deal with. They have been willing to spend time to understand the finance requirements with restrictions and to put a workable funding option together that would not be an option with any of the major banks. I look forward to continuing our relationship on this project and others.”

OtherResidentialAustraliaFinancePlanningPlanningOther
AUTHOR
Staff Writer
"TheUrbanDeveloper.com is committed to delivering the latest news, reviews, opinions and insights into the best of urban development from Australia and around the world. "
More articles by this author
ADVERTISEMENT
TOP STORIES
Exclusive

‘Construction Not a Scale Game’: Hutchinson

Phil Bartsch
9 Min
Nation's build-to-rent project Charlie Parker in Sydney's Parramatta where more projects are being located and built outside the CBD.
Exclusive

Foreign Capital Still Dominates BtR but Things are Changing

Marisa Wikramanayake
7 Min
Exclusive

Fortis Reveals Plans for Coveted Bowen Terrace Site

Taryn Paris
4 Min
Exclusive

Accor Deputy Delivers Verdict on Brisbane Games Hotel Shortfall

Phil Bartsch
6 Min
Qld Budget 2025-26 Brisbane City
Exclusive

Billions Promised, Now Deliver: Industry’s Qld Budget Verdict

Vanessa Croll
6 Min
View All >
A rendering of the three-storey apartment project Arca by Red & Co at Stafford near Brisbane.
Residential

‘Confident’ Red & Co Starts Work on Stafford Apartments

Marisa Wikramanayake
Sponsored

Rare Coastal Development Opportunity in Heart of Mooloolaba

Partner Content
Charter Hall’s $925m Hyde Park skyscraper
Planning

Charter Hall $925m Sydney Skyscraper Wins City Backing

Vanessa Croll
The 55-storey hotel and apartment scheme in Hyde Park has won planning committee backing, now awaiting state sign-off...
LATEST
A rendering of the three-storey apartment project Arca by Red & Co at Stafford near Brisbane.
Residential

‘Confident’ Red & Co Starts Work on Stafford Apartments

Marisa Wikramanayake
2 Min
Development

Rare Coastal Development Opportunity in Heart of Mooloolaba

Partner Content
2 Min
Charter Hall’s $925m Hyde Park skyscraper
Planning

Charter Hall $925m Sydney Skyscraper Wins City Backing

Vanessa Croll
3 Min
Industrial

Cadence Nabs Logistics Portfolio for $170.5m

Taryn Paris
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/sound-advice-helped-nsw-developer-overcome-funding-hurdles