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Case Study

Boutique Residential Development

About

$5M Facility to fund construction of 4 luxury apartments in Sydney’s Eastern Beaches.

Challenges

Our client had acquired the site and achieved Development Approval (DA) for 4 full-floor luxury apartments. The strategy on completion was undefined, with potential outcomes including sales, leasing, occupation by the developer, or a combination of all 3.

Given the strong equity contribution coupled with the experience and capacity of the sponsors, bank finance was preferred.

Solution

Ocian secured a Senior Debt Facility with a major bank.

Results

Included in the terms of this facility was no requirement for pre-sales or sales milestones during construction. We also negotiated an additional 12-month term post completion, available at reduced pricing for the client to determine a longer-term strategy.

As there was no clear outcome decided, we added the ability to resize debt based on a residual Loan to Value Ratio if sales were achieved. Indicative terms also provided for a long-term hold should Borrower decide to lease up the property on completion.

We provide for all Ocian clients a means to maximise the value of their investments. We are proud to have achieved market leading pricing and terms for this client.

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