A Queensland client of ours had an eye for a great opportunity, having secured 20,000sqm of land in a ‘neighbourhood growth zoning’ corridor that allowed for high-density development.
One big problem, though.
Having started the design process, the client realised the council’s koala and flooding concerns would limit the number of townhouses they could build. This would impact the project’s viability, as it would no longer be as profitable as the client had originally calculated before they bought the site.
Thankfully, the client had already been in touch with us to work on an early-stage development feasibility analysis. By workshopping different scenarios, we quickly saw the solution to the client’s problems: buy the neighbouring plot of land. This would take the project’s potential yield from 55 to 90 townhouses, while addressing the council’s planning concerns.
The next challenge was securing funding for the neighbouring land, as the lender would need to be comfortable with the planning risks. CPC introduced our client to a non-bank lender that recognised the project’s potential. So the lender was keen to do business.
As part of our funding solution, CPC:
- Arranged finance on the additional 10,000sqm lot at 100% of the land price
- Secured a cash equity release for the client (as the original land value had increased) by offering the lender first mortgage security across all three parcels of land
Here’s what the client had to say about their experience:
“We knew CPC could provide early-stage development feasibility analysis to ensure financial viability. They got to know our project team and worked closely with us to identify opportunities and risks. When we realised a larger project would become more feasible CPC quickly arranged for one of his lenders to utilise the uplift and secure the additional block. We also took the opportunity to withdraw some equity within the project that we will use for a short term funding”
Legal & Compliance
Crowd Property Capital Pty Ltd (CPC)
A registered company under the Corporations Act 2001, ACN 600 539 544
An accredited member of the Finance Brokers Association of Australia (FBAA) Member No M-352808
A licensed Corporation under the Property, Stock and Business Act 2002, Corporation License No. 10065109.
A member of the Real Estate Institute of NSW (REINSW)
David Lovato (Sole Director) holds a Certificate IV in Finance and Mortgage Broking and Property Services (Real Estate Agents License No 201 604 57 )
