Case Study Category: Construction & Development Loans
Flexi Drawdown Facility
90 residential Lots (including Super Lots) located in Hobsonville Point, Auckland. The subdivided sections were unencumbered, and the client required funding to complete the construction of houses across the wider group. An on-demand cashflow facility was provided to enable the group to meet cashflow obligations.
| Loan: | $20,000,000 |
|---|---|
| End Value: | $33,500,000 |
| Loan-to-value: | 60% |
| Term: | 12 months |
Master-planned Subdivision
This construction loan was structured into two parts: (i) the purchase of an unconsented block of land in Lincoln, Christchurch, and (ii) construction and associated earthworks for the initial stages of the 120-lot land subdivision. The construction loan included capitalised interest and fees, and a revolving GST facility. 50% presales cover was achieved prior to drawdown from the construction facility.
| Loan: | $19,000,000 |
| End Value: | $29,230,000 |
| Loan-to-value: | 65% |
| Loan-to-cost: | 80% |
| Term: | 12 months + extension |
Single-house Build
A section purchase and construction of a single house within a greenfield subdivision in Flat Bush, Auckland. The construction loan included capitalised interest and fees with no repayments required during the build. Funding was approved without a fixed price contract in place and no valuation drawdown reports were required – instead, drawdowns were provided based on agreed milestones.
| Loan: | $840,000 |
| End Value: | $1,200,000 |
| Loan-to-value: | 70% |
| Loan-to-cost: | 82% |
| Term: | 9 months |
Terrace-townhouse Development
Construction of 29 terraced townhouses, and subsequent subdivision located in Whenuapai, Auckland. The loan facility provided for capitalised interest and fees, and included a revolving GST facility. Funding was provided without any pre-sales or a QS appointed to the project.
| Loan: | $12,950,000 |
| End Value: | $19,300,000 |
| Loan-to-value: | 67% |
| Loan-to-cost: | 81% |
| Term: | 12 months |