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28 Apr RSP Case Study: Land Bank Property Development 2021
Case Study 2: Land Bank – Property Development
CLIENT POSITION:
Loan (limit): $12,250,000
Term: 18 months
LVR: 55%
Enterprise: Land Bank for future development
Lender Type: Specialised Equity Property Lender
Location: Western Sydney
Bankability: Improving
Time to Settlement: 16 days
Borrower’s primary business entails offshore manufacturing and wholesale importing of goods. Recent investment and expansion (COVID driven) into direct to customer sales via e-commerce platforms to existing retail clients and their own innovative platforms have positioned the client extremely well for future profitability at the expense of current cash flow.
Secondary business is a medium-term play of land transformation via rezoning.
An opportunity to secure strategic holdings in a growth zone of SW Sydney required immediate capital to complete the acquisition. Projected cash flows will enable a refinance into mainstream banking but the immediate requirement for capital fell outside of banking capability.
RSP SOLUTION:
Funding covered all transaction costs (finance fees, stamp duty) plus additional working capital to meet ongoing commitments and fund business expansion.
Exist strategy clearly defined with a mainstream bank lined up to provide the “take out” finance when minimum financial hurdles are met.
Speed to market, ease of transaction execution and significantly reduced funding risk during the transitionary phase of business growth.
Ongoing support from Robinson Sewell Partners
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