CASE STUDY

Junior Debt

  • Sydney Junior Debt Fund

    Sydney Junior Debt Fund

  • Panthera Junior Debt

    Panthera Junior Debt

About This Project

Project WhistlerSydney Junior Debt FundRetail GC Junior Debt
Debt typeMezzanineMezzanine / Preferred EquityMezzanine
PROPERTYResidentialIndustrial, Mixed-use, ResidentialRetail
LocationSouth Western SydneyBondi Beach, Lane Cove, CronullaNewcastle & Gold Coast
Loan Size$33 million$16 million$13 million
Peak LVR89%70%83%
Term14 months26 months12 months
Investment Thesis
  • Strategic location in South West growth corridor with planned infrastructure spending
  • Attractive risk adjusted returns with a diversified repayment strategy
  • Strong pre-sales coverage
  • Sites located in wealthy demographics, with RW Capital having strong conviction on the significant wealth generation in the Sydney market
  • Diversified risk profile with three properties across varying asset classes
  • Strong conviction on convenience retail (i.e. access to fresh produce) and entertainment in a post-COVID world)
  • Highly experienced borrower
RW Capital Value-Add
  • Proprietary Ray White data gave RW Capital the ability to provide funding during COVID-19 when other lenders had pulled out of the market
  • Creative structure combining three facilities into a single instrument given all were mezzanine positions
  • Through a strong relationship with the bank first mortgage lender, RW Capital was able to secure a second mortgage over the property
Category
Direct lending