Trilogy Funds found a solution when the banks could not, to support townhouse development in Brisbane’s sought-after southern corridor.

Project overview

Trilogy Funds has provided a $15.2 million construction facility to support the delivery of a boutique 24-townhouse development in Runcorn, Queensland – one of Brisbane’s highest-demand residential catchments.

The project comprises six three-bedroom and 18 four-bedroom townhouses, each offering generous living areas (average 193 sqm), well-considered layouts and a contemporary architectural style. Additional features include extensive visitor parking (15 spaces) and landscaped communal areas, including a small boardwalk and covered recreation structure at the rear of the site.

Runcorn sits at the convergence of two high-growth regions, Brisbane City and Logan, and is positioned near schools, employment hubs, train links and key transport corridors. The suburb’s proximity to Sunnybank, Rochedale and Eight Mile Planes continues to push demand into the area as established suburbs face limited development capacity.

Runcorn’s proximity to Sunnybank in particular, a major cultural, retail and dining centre, creates longstanding demand for family-sized homes in the area. A scarcity of new land and townhouse supply positioned this project strongly for both owner-occupiers and investors.

The Sponsors bring over 20 years of medium-density development experience across Southeast Queensland. Their development group has delivered numerous townhouse, apartment and childcare projects, including a successful 118-lot and 76-lot subdivision at Burrum Heads, both funded and fully repaid with Trilogy Funds.

Why Trilogy Funds was the preferred lender

Trilogy Funds was selected as the preferred partner for several reasons. These include:

1. A trusted, long-term non-bank partner

This marks the fourth transaction between Trilogy Funds and the Sponsor since 2021. Trilogy Funds’ strong relationship with the Sponsor provided confidence that the facility could be structured efficiently and tailored to their preferred deliver model.

2. Flexible structure supporting a ‘no presales’ strategy

Given Runcorn’s demand profile and the Sponsor’s proven sales partners, Trilogy Funds accommodated a structure that did not require any presales – something the major banks were unable to offer. This flexibility allowed the developer to start the project much earlier, launch sales progressively during construction and maximise price realisation.

3. Fast, reliable construction funding aligned with program timing

Demolition, design and approvals were already completed, and early works were timed for the dry season, meaning the Sponsor required certainty of settlement and construction drawdowns. Trilogy Funds’ experience with their builder and previous project performance ensured a streamlined approval and monitoring process.

Exit strategy

The primary exit strategy is strong off-the-plan sales achieved throughout construction. The Sponsor’s last four projects sold out prior to practical completion, creating confidence in achieving the 13 to 16 sales required to repay the facility.

A secondary pathway allows the Sponsor to refinance into an investment loan structure if a smaller number of early sales are achieved, leveraging the Sponsor’s internal property management capability.

Discover how Trilogy Funds’ relationship-driven financing solutions can support your next development

Request an indicative offer at https://trilogyfunds.com.au/financing/.