"The Place" Ashfield
The Mews Cobbity
The Duke
Property
Mixed-use, Residential
Residential
Mixed-use, Residential & Retail
Location
Ashfield, Sydney
Cobbity, Sydney
Kangaroo Point, Brisbane
Loan Size
$44 million
$203 million
$34 million
Peak LVR
68%
78%
65%
Term
18 months
5 months
8 months
Investment Thesis
- Ashfield is a suburb with an abundance of amenities and a strong migrant population
- Significant presales cover and balance was effectively underwritten by strong growth as a result of migration
- The Mews property was contracted for sale to an Australian Stock Exchange (ASX) listed real estate company
- After undertaking due diligence, the lending syndicate was comfortable extending the leverage (through a tranche B) with the expectation that it will be repaid from settlement (occurred 24 December 2021)
- Property was in an inner-city location, with an abundance of amenities
- With 70% of facility covered by presales and advanced construction progress upon Financial Close de-risked the project
RW Capital Value-Add
- RW Capital assisted a highly inexperienced developer through the development process
- RW Capital assisted the developer in the attainment of a residual stock facility to address the shortfall of the loan repayment amount by running a bank tender process
- RWC provided a working capital equity release for the Borrower (an existing relationship) after conducting thorough due diligence
- Despite a complex lending syndicate, RWC was able to execute the financing within a tight timeframe
- RW Capital utilised its propriety data to understand underlying trends behind Brisbane’s supply/demand dynamic, which had previously caused a large bank to withdraw its financing for the asset
- RW Capital conducted thorough due diligence on an under-construction asset
"The Place" Ashfield
Property
Mixed-use, Residential
Location
Ashfield, Sydney
Loan Size
$44 million
Peak LVR
68%
Term
18 months
Investment Thesis
- Ashfield is a suburb with an abundance of amenities and a strong migrant population
- Significant presales cover and balance was effectively underwritten by strong growth as a result of migration
RW Capital Value-Add
- RW Capital assisted a highly inexperienced developer through the development process
- RW Capital assisted the developer in the attainment of a residual stock facility to address the shortfall of the loan repayment amount by running a bank tender process
The Mews Cobbity
Property
Residential
Location
Cobbity, Sydney
Loan Size
$203 million
Peak LVR
78%
Term
5 months
Investment Thesis
- The Mews property was contracted for sale to an Australian Stock Exchange (ASX) listed real estate company
- After undertaking due diligence, the lending syndicate was comfortable extending the leverage (through a tranche B) with the expectation that it will be repaid from settlement (occurred 24 December 2021)
RW Capital Value-Add
- RWC provided a working capital equity release for the Borrower (an existing relationship) after conducting thorough due diligence
- Despite a complex lending syndicate, RWC was able to execute the financing within a tight timeframe
The Duke
Property
Mixed-use, Residential & Retail
Location
Kangaroo Point, Brisbane
Loan Size
$34 million
Peak LVR
65%
Term
8 months
Investment Thesis
- Property was in an inner-city location, with an abundance of amenities
- With 70% of facility covered by presales and advanced construction progress upon Financial Close de-risked the project
RW Capital Value-Add
- RW Capital utilised its propriety data to understand underlying trends behind Brisbane’s supply/demand dynamic, which had previously caused a large bank to withdraw its financing for the asset
- RW Capital conducted thorough due diligence on an under-construction asset