A recently repaid facility allowed the Sponsor to deliver four bespoke townhouses without a presale requirement, while supporting a refinance-led exit strategy.

Project overview

Trilogy Funds provided a tailored construction refinancing solution that enabled the Sponsor to unlock the development potential of a long-held family asset while progressing immediately into construction without reliance on presales.

The flexible structure recognised the Sponsor’s experience and strong equity position, allowing for a low-leverage entry point, staged delivery and refinance-led exit strategy.

The facility supports the construction of four architecturally designed, three-story townhouses located in Northcote, a highly sought-after suburb in the Ruckers Hill precinct that sits 6 kilometres from the Melbourne CBD.

The project is positioned within a tightly held market that benefits from its proximity to Northcote Plaza Shopping Centre and tram, train and bus connectivity.

Each townhouse will deliver three to four bedrooms across three levels, multiple living areas, premium finishes and secure parking with laneway access.

Why Trilogy Funds was the preferred partner

Trilogy Funds was chosen as the preferred financing partner for a number of reasons.

1. Refinancing capability enabled project execution

Trilogy Funds provided a facility that refinanced an existing bank, unlocking capital and allowing the Sponsor to move directly into the construction phase without delay.

2. No presale requirement

The project was financed without presale requirements, enabling the Sponsor to retain flexibility in timing marketing and sales, avoid discounting in a price-sensitive environment and maximising value closer to completion.

3. Support for a refinance-led exit strategy

Unlike traditional lenders who are typically focused on full presale requirements, Trilogy Funds supported an exit strategy that involved the retention of all four dwellings for rental income and refinance with a bank.

This structure aligned with the Sponsor’s long-term investment objectives.

4. Recognition of strong equity and conservative gearing

The facility was structured at a loan-to-value ratio of 59.8% (including GST), supported by:

• A gross realisation value of $9.7 million; and
• The Sponsor’s long-term ownership of the site, which meant a substantial portion of the land’s value was already realised as equity

These aspects provided a strong security buffer and reduced risk.

Clear and disciplined exit strategy

The exit strategy involved the refinance of the completed dwellings based on rental income. This approach allowed the Sponsor to reduce debt exposure, retain high-quality assets in a premium location and transition into a long-term income producing portfolio.

The importance of tailored financing

Whether it’s refinancing, funding without presale requirements or aligning with long-term investment strategies, Trilogy Funds delivers flexible, relationship-driven financing solutions for experienced borrowers.

The Sponsor has been vocal about the importance of our tailored approach.

“Thank you to Craig Jamieson and the Trilogy Funds team for being a great and flexible lending partner to this project,” the Sponsor said.

“The development has been very successful and it’s a testament to how Trilogy Funds and the project partners have worked very efficiently together. I will be highly recommending Trilogy Funds to my contacts.”

Discover how Trilogy Funds supports boutique and infill developments here: https://trilogyfunds.com.au/financing/

Settled by Craig Jamieson.

This article has been prepared by Trilogy Funds Management Limited (Trilogy Funds) ABN 59 080 383 679 AFSL 261425 for existing and prospective borrowers and brokers and provides information only about Trilogy Funds’ lending services. Trilogy Funds is not a licensed credit provider and does not make loans regulated by the National Credit Code. The source of Trilogy Funds’ loans may include managed investments schemes registered with ASIC, as well as other private lending arrangements. If you would like more details on our lending services, please contact us.