Making the vision bankable
It was tough, but we’re used to navigating deals like this.
Our client had a bold vision to take on an 11-lot subdivision in the Otago region by acquiring the neighbouring farm.
The views from the site were stunning.
I could see exactly why the client fell in love with it.
Here was the reality that they were facing:
- No resource consent (yet) from the Otago Regional Council
- No cash available for the purchase
- A $2.7 million acquisition price
- The risk of missing out on $1.5 million in potential profit if the deal fell through
100% finance for unconsented land isn’t easy.
It’s the kind of thing many lenders would walk away from.
What helped here was having the right people in the room.
We sent in a specialist lender based in Queenstown, who knows the area well, to meet with the three joint venture partners and discuss the opportunity.
Having someone local who understood both the landscape and the value of the vision made a huge difference.
In the end:
- The full $2.7 million was funded
- Another $1.1 million was refinanced to support the security of the transaction
- The deal got the green light to move forward
We’re now working on getting resource consent and raising an additional $1 million for subdivision works.
That first hurdle is now behind them, and visiting the site recently brought it all to life.
They gave me a tour around the property, walking me through their vision and what’s next. You could feel the momentum.
The excitement said it all.
Not because it was easy but because they stuck with it and made it happen.
