CapStra was mandated by the Client to identify a suitable lender to provide $111m of senior debt to support the delivery of 425 apartments in the suburb of Newstead (2.5km from the Brisbane CBD).
Total development costs of the project were estimated at $182m. The debt facility was required for the development of stages 2 and 3 of a 5 stage development which included 2 residential towers with 4 levels of basement parking. The project was DA approved, had achieved 110% debt cover in presales and had appointed a Tier 1 builder.
The senior debt facility limit of $111m was based on peak debt and reflected a loan to cost of 75% and loan to value ratio of 65%.
CapStra identified and approached a prequalified group of lenders to participate in an off-market ‘expression of interest’ and advise on the most appropriate and financially beneficial funding structure to provide senior debt for the Project. After selecting the most appropriately positioned lender, CapStra was required to negotiate and finalise terms and documentation to facilitate funding.
Taking into account the quantitative and qualitative objectives of the client, CapStra identified a preferred senior debt provider to participate in the transaction at competitive market pricing within the required time frame. The introduction of the senior debt participants allowed the Client to broaden their banking relationships to assist in the funding of additional Newstead stages and future development projects.