Loan in Spotlight: Trinity Park, QLD

A flexible bridging solution supports a staged strategy to unlock strong underlying land value with clear pathways to further uplift.

Project overview

Trilogy Funds recently provided a $3.9 million bridging facility to support the acquisition and early-stage development of two adjoining englobo land parcels in Trinity Park, a high-growth coastal suburb in Cairns’ northern corridor.

The financing solution allows the Sponsor to complete the settlement of the sites and progress multiple material change of use (MCU) development applications (DA) to form a significant staged development of a mixed-use precinct.

The security comprises two lots totalling 1.7 hectares, and the DA submitted across three stages includes:

• Stage 1: A 1,290 sqm medical centre with eight tenancies and 56 car parks.
• Stage 2: Two six-storey residential buildings comprising 70 apartments.
• Stage 3: Four residential buildings (four to seven storeys) consisting of 100 apartments.

Trinity Park is experiencing strong population growth, a chronic shortage of infill development land and rising demand for both neighbourhood medical and higher-density residential stock. The site benefits from connectivity to the Captain Cook Highway, the Smithfield Bypass, education and medical precincts, as well as established amenities including Bluewater Marina and Trinity Beach.

Cairns Regional Council’s ‘Towards 2050’ growth strategy identifies the need for 33,000 additional dwellings as the region’s population is forecast to increase by more than 72,000 people. Trinity Park is one of the few areas capable of supporting both neighbourhood medical and medium-density housing as demand intensifies.

The site’s zoning, scale and corner positioning provide strong long-term development versatility.

The Sponsor is a longstanding repeat borrower, having successfully completed multiple Specialist Disability Accommodation (SDA) developments financed by Trilogy Funds.

Why Trilogy Funds was the preferred partner

There were several compelling factors why the Sponsor chose Trilogy Funds as their preferred financing partner.

1. A flexible bridging structure supporting staged MCU approvals

The Sponsor required a financing solution capable of funding acquisition while enabling a staged approach to Council approvals, beginning with the medical component to expedite permit issuance and unlock valuation uplift. Trilogy Funds’ bridging facility supports DA progression across all three development stages and funds holding costs during the approvals window.

2. Confidence built on a long-term lending relationship

After eight previous successful transactions, the Sponsor again sought a lender who understood their acquisition strategy, development approach and exit pathways. Trilogy Funds’ longstanding relationship and experience funding both SDA and mixed-use projects provided a reliable platform to move quickly and decisively on the opportunity.

3. Ability to capture land value uplift ahead of construction

Upon approval of the Stage 1 mixed-use DA, the land valuation is forecast to increase by $5.160 million, reducing the loan-to-valuation ratio (LVR) substantially, strengthening both project feasibility and refinance options. Trilogy Funds’ facility structure enables the Sponsor to progress towards this uplift efficiently.

Clear exit strategy

As per previous SDA transactions, upon practical completion and occupancy, the loan will align with the Sponsor’s established refinance pathway with a major Australian bank. This serves as the primary exit strategy.

Discover how our fast, flexible financing solutions can work for you

Trilogy Funds specialises in tailored development finance that supports strong regional projects and experienced developers. Request an indicative offer at  https://trilogyfunds.com.au/financing/.

Settled by Jack Mihaljovic.