This month we were approached by an experienced Brisbane property developer who had contracted to purchase a large house on over 2,100 square metres of land in Indooroopilly, Brisbane with the intention of splitting the house off and subdividing the remaining land.
A valuation was commissioned on the property which came in at the purchase price of $4.5m and funding of $3.6m was advanced on a 9-month term at 10.45% per annum.
The developer whom we have previously assisted had already fielded several offers post-contract for the property at a higher value than purchased and whilst he was able to obtain funding at a lower rate than that offered by ASCF, preferred our loan product due to the fact that we did not insist a minimum interest period on the facility, unlike other lenders who whilst offering lower rates require a minimum interest period.
The developer is currently assessing his options in terms of whether to proceed with the development or sell the property as is at a profit and pay out the ASCF loan without penalty or early exit fees.
This article appeared in our October 2021 Investor Newsletter – download the full newsletter here.