Transaction Residential development & hotel investment
Location Sydney CBD, NSW

CapStra’s role

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.

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