Sample idutch deal - Bondi Beach

Sample idutch deal - Bondi Beach

LVR

1 %

Term

1 Months

Loan Amount

$ 1

Expected Rate

1 %

LVR

1 %

Term

1 Months

Loan Amount

$ 1

Expected Rate

1 %
IDU-SAMPLE
Bondi Beach, NSW
Residential First Mortgage Settlement & Construction
 

This sample loan scenario is for a property in Bondi Beach. The borrower is seeking $9,500,000 (including capitalised interest) for a period of 18 months. The funds are the be used to refinance the existing debt and to finance the construction of a medium-density town-house scheme.

The deal can be summarised as follows: 

 

  • The Loan to Value Ratio covenant is 50%
  • The interest rate is targeted at circa 8.5% pa (plus fees and establishment costs)
  • Borrower is happy to subject loan to 25% debt coverage in presales 
  • Build contract is at an arms-length and is a fixed price agreement for $3.8m + GST
  • Developer feasibility records a developer’s margin of 26% (assuming non-bank lending rates)
  • Security on offer is a Registered First Mortgage and a Personal Guarantee from the Director of the borrowing entity
  • Settlement date is scheduled for 18 January 2020

The supporting documentation available in the data-room include: 

  • Valuation report dated 19 September 2019
  • Quantity Surveyor’s report dated 17 August 2019
  • Certified copy of the borrower’s assets & liabilities 
  • Approved development plans
  • Build Contract signed and dated 7 July 2019
  • Presales schedule
Note: This is a sample deal and details have been changed and fictionalised to protect borrower details. 
Access is presently restricted to the documents recorded below.
  • Valuation report dated 19 September 2019 
  • Quantity Surveyor’s report dated 17 August 2019
  • Certified copy of the borrower’s assets & liabilities 
  • Approved development plans
  • Build Contract signed and dated 7 July 2019
  • Presales schedule