Completion Funds enables stalled Development Projects to proceed to completion, Development Projects can be stalled for any reason, including: –
- the builder the bank recommended goes bust during the course of your development – causing the Development Projects construction to cease;
- labour shortages;
- bankruptcy of subcontractor/supplier/installer; and
- cost overruns not covered by the current construction loan lender, nor will they fund and now require you to fund from equity.
Such events lead to delays and significant cost overruns that if not addressed and overcome quickly, will see the Development Project collapse and a mortgagee sale result. Accordingly, Completion Finance is required to fund a portion or all of these cost overruns with a view to expediting the profitable completion of the Development Project.
Pioneer Capital Finance is a specialist in Completion Finance understanding the complexity of each situation and tailoring a financing solution that enables you the complete/deliver the Development Project.
Completion Finance can be organised quickly and in such a way that despite your unforseen setbacks, you can still honour the original presales on your Development Project, thereby enabling you to keep your original exit strategy.
To date we have funded many such projects to profitable completion including:-
1. A nine-level residential development in Pyrmont where the builder had gone bust after the structure reached the top floor; and,
2. Seven-luxury apartments at Bellevue Hill where the banks recommended builder went bust after site acquisition, excavation of the site and associated piling.
These two examples of many highlights how the Principal negotiated a Completion Finance Loan Facility that saw the profitable completion of the respective Development Projects even after all work on site had ceased at no fault to the Developer.