The Sponsors have a background in property development. They have been operating a building company since 2019 and have completed a couple of small renovations.
The purpose of this loan is to provide finance for the completion of a construction on a subdivided block in Box Hill, NSW.
The Sponsor can’t get bank finance as construction has commenced on the house on the front lot which is near completion. Banks will not lend for such a project and their current lender doesn’t do construction finance.
Security on offer is the block of land which has a DA for sub division into two lots. The front lot has a near complete double-story house with 4 bedrooms, 2 bathrooms and 2 garage spaces. Sponsor has a conditional sale contract which will be settled once the sub division is completed.
The exit strategy is to sell the lots to extinguish the debt.
- The loan will be secured by a Second Mortgage/Caveat
- Personal Guarantee from Individual Sponsors
- General Security Agreement over Corporate Sponsor + PPSR Charge