Cost Based - Full Doc

GCC Cost Based Development Finance refers to traditional development finance sourced via Banks and major institutions using the Total Development Cost method of funding. Plainly put the bank would lend a percentage of the actual total development costs of the project, up to a maximum of 80% and the property developer will need to contribute a minimum of 20% as cash or equity. Risk mitigants such as pre-sales will also need to be obtained by the property developer in order to draw down the funding. The developer will also need to procvide 2 to 3 years finacials and tax returns.

GCC Cost Based Development Finance is characterised by the cheapest rates available in the market place, with rates starting at Bank Bills plus 1.25% to 3.50%, but typically priced in the Bank Bill plus 2.5% range

GCC FullDoc Development Finance is best suited to property developers with sufficient cash and/or equity to contribute to their project, who are looking for a cheaper price point to meet their needs.

Below is a simple example of a funding table of GCC TDC facility:

Assumptions (all figure exclude GST);

Gross Realisable Value:

Land Cost / Value:

Construction Costs:

Total Costs (ex interest):

Construction Period:

Interest Rate:

Presales:

$13,000,000

$5,000,000

$10,000,000

12 months

8% pa

$8,000,000

Please note that rates and figures used are for illustrative purposes only, any actual transaction will be priced according to the specifics of the project.

Hard Costs

Land at Cost / Valuation

Preliminaries

Council Contributions

Professional Fees

Construction (or subdivision) Costs

Construction Contingency

Sub Total

Soft Costs

Marketing Costs

Sales Commissions

Stamp Duties

Sub Total

Interest

Total Costs

$5,000,000

$200,000

$100,000

$5,000,000

$250,000

$10,650,000

$150,000

$300,000

$100,000

$550,000

$500,000

$11,700,000

Developers Equity
$2,150,000
$0
$0
$0
$0
$0
$2,150,000

$150,000
$300,000
$100,000
$550,000

$0

$2,700,000

Total Loan
$2,850,000
$200,000
$100,000
$100,000
$5,000,000
$250,000
$8,500,000

$0
$0
$0
$0

$500,000

$9,000,000

GCC FullDoc Development Finance can be summarised as follows:

The cheapest rates available in the market
Maximum loan of 85% of TDC
Property developer needs to contribute a minimum of 20% cash or equity to the project
Presales are required
Full Financials are required

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