Private Credit – Bridge Asset Finance to Stabilisation

Industrial and Residential Masterplan Estate

Mixed-use, Residential

Residential Masterplan Estate

Badgerys Creek & Cobbitty, Sydney

Double Bay, Sydney

Cobbitty, Sydney

$827 million

$25 million

$100 million

80%

67%

67%

21 months

39 months

27 months

• Strategic land holding located directly opposite the new Western Sydney Airport (Badgerys Creek)
• RW Capital had strong conviction on demand for industrial and residential property in this area

• Strong conviction on downsizer market given significant wealth generation in the Sydney market on the back of property price increases
• Experienced developer with additional sites located adjacent to the subject property

• Demand for new housing in Sydney’s South West corridor driven by infrastructure investment (new Western Sydney airport, business park, rail and roads)
• Facility had conversion feature which facilitated paydowns and the step up of returns as part of debt becomes second mortgages behind a construction bank once 100% presales cover is achieved

• The deal was highly complex due to its size (one of the largest land bridge facilities ever completed in Australia), and multi-faceted planning approvals
• RW Capital formed a highly complicated lending syndicate, and managed both the syndicate and the borrower to deliver a positive exit

• Proprietary Ray White data gave RW Capital the ability to provide funding during COVID-19 when other lenders had pulled out of the market

• Created a highly complicated syndicate with both foreign and domestic institutional investors
• RW Capital’s creative structuring ability differentiated it from other financiers, which allowed for the conversion of the debt (from senior to junior) in stages as the project progressed