Upfront Integrated End2End Funding: Case Studies
Premium 12 Townhouse Project In Melbourne
Other Case Studies
- Leveraged For Value
130 apartment development in Sydney
- Upfront Integrated End2End Funding
Premium 12 townhouse project in Melbourne
- Take-Out Solutions
Multi-format Shopping centre project in Eastern Melbourne
- Land Owner JVs
Development site in prime Melbourne suburb
- Builder JV arrangements
Mixed-use project (residential, hotel, commercial) in Melbourne
- Creative Structures
Land subdivision project in Brisbane
Solution Type: Upfront Integrated End2End Funding
- Integrated acquisition-development funding structure
- Upfront Construction Debt Facility with multiple tranches of capital release per agreed criteria and milestones – from land acquisition through to construction to completion
- Nil to minimal pre-sales
Target Customer Benefits
- Enhanced risk management - brings certainty to the development financing equation
- Gives Sponsor clear visibility into end2end financing criteria
- Enables greater clarity and boldness in land acquisition
- Expedited pathway to construction from land acquisition
Scenario Summary
- Premium 12 townhouse project in Melbourne
- Sponsor had been burnt on prior projects by Construction funding falling through at last minute plus facing long delays in construction commencement due to onerous pre-sales requirements
Our Solution
- We arranged a bespoke multi-tranche Development Finance facility with Nil pre-sales requirement and 3 key tranches of capital release – locked in upfront at point of land purchase
- Tranche A: to enable Sponsor to settle on the development site
- Tranche B: some equity release once the planning permit was secured
- Tranche C: fund all construction and related project costs
- Allowed Sponsor to bid confidently for the land, securing a highly sought after land parcel
- Negated a traditional 2-hop approach (Land facility and then a separate Construction facility) - this de-risked financing pathway enabled relatively inexpensive Mezzanine funding to be included in the capital stack – minimising Sponsor’s equity contribution
- Enabled significant peace of mind from greater certainty in project financing
Other Case Studies
- Leveraged For Value
130 apartment development in Sydney
- Upfront Integrated End2End Funding
Premium 12 townhouse project in Melbourne
- Take-Out Solutions
Multi-format Shopping centre project in Eastern Melbourne
- Land Owner JVs
Development site in prime Melbourne suburb
- Builder JV arrangements
Mixed-use project (residential, hotel, commercial) in Melbourne
- Creative Structures