White & Partners loaned a convertible land facility to a developer to settle the purchase of a significant land holding in the south west Sydney growth area, over 80 hectares on The Northern Road, Cobbitty. The development is approved to be subdivided into six super lots. The project will form a master planned community with residential and environmental lots, parklands and a neighbourhood shopping centre.
Many lenders sought to facilitate the project. White & Partners offered flexibility and risk tolerance based on experience in the development market. A conversion feature is part of the facility which allows for its gradual paydown as the super lots achieve necessary conditions, while part of the balance will convert into a second mortgage once there is at least 100% pre sales coverage for a construction loan and tier one financier to fund the project. This allows White & Partners to lend to the developer through stages one, two and beyond whilst also enhancing returns for investors.