PRE-DEVELOPMENT FUNDING

Client Scenario: This client had bought large sites with the vision of potentially carrying out property development projects in the future. However, they hadn’t purchased land with that specific intent, and while they knew development could happen, they hadn’t scoped down the specifics of those plans. Having decided to move forward with the project, they approached us to secure the required pre-development funding.

Merx Solution: Based on their objectives and their existing portfolio of nine properties, we were able to provide the funds they needed to progress the feasibility study on their project, as well as undertake some planning and design work, and get resource consents for future subdivision and development. Once these stages have been completed, we’ll also be well-placed to help them fund the subsequent development work.

LAND SUBDIVISION – PRE-DEVELOPMENT

Client Scenario: This client, a developer, was looking at getting a subdivision project underway, but hadn’t had completed all the required pre-development work to obtain a full cost-to-complete property development funding structure. Their project needed a little nudge in the right direction.

Merx Solution: Once again, we were able to step in. We determined that they had had sufficient progress on-site for us to fund some of the initial costs, namely $150k secured by a second mortgage. These extra resources will enable our client to unblock the project and proceed with the development stage as planned.