CapStra’s role was to obtain a wholesale cost-effective funding solution for the delivery of a luxury residential apartment tower and refinance of an existing 5 star hotel within a short turnaround timeframe, from a lender who would take a commercial and flexible view with respect to foreign presales levels and staged security release.
CapStra originated a AUD418 million stretch senior construction facility on behalf of a third party lender, to facilitate the delivery of the project and refinance of an operational 5 star hotel. The transaction provided the borrower with an approved/documented funding solution for the project within the required short turnaround time. The funding solution was provided by a single lender, in the form of a 1st mortgage, uni-tranche facility, with equivalent leverage to what would have otherwise been achieved by collating a syndicate of senior banks with a mezzanine debt provider.
Provision of a cost effective development funding package which provided the borrower with a flexible funding model which satisfied their funding requirements in terms of loan amount, pricing, presales coverage, staged security release and other important parameters.
This is a significant transaction in the Australian property finance market being one of, if not the largest, single development finance loan ever provided by a single capital provider in Australia.
The Bannisters Hotel Group consortium were looking to raise senior debt refurbishment funding and subsequent investment funding to assist with the conversion of an existing 3.5 star, older style Ibis hotel into a 4-star, 82 bed Bannisters hotel together with facilities including a signature ‘Rick Stein’ restaurant and a bar.
