Trilogy Funds delivers $36.947 million financing solution to allow a repeat borrower to transition from bridging loan to full construction facility.

Project overview

Trilogy Funds delivered a $36.947 million construction financing facility that enabled a three-time repeat Sponsor to consolidate multiple landholdings, refinance an existing bridging facility and commence delivery of its largest project with Trilogy Funds to date. The facility was structured to support the Sponsor’s continued growth strategy, recognising a proven delivery record, established sales capability and growing pipeline of medium-density residential developments across Southeast Queensland.

Building on the successful funding of the Sponsor’s recent ‘Willowbrook’ development, Trilogy Funds provided a financing solution that facilitated the purchase of an adjoining parcel of land with the benefit of a Council permit, amalgamate the development site and progress construction.

The facility supports the development of ‘Oaklands’, a master planned community that comprises 67 two-level townhouses across 13 buildings, with five distinct floorplans ranging from approximately 135 sqm to 155 sqm. Each residence features:

• Three bedrooms and three bathrooms;
• Secure garage parking;
• Private courtyards; and
• Contemporary layouts designed for both owner-occupiers and investors.

The development will also deliver extensive communal amenity and green space, including a community pavilion, swimming pool, BBQ and entertaining areas, as well as a community park and recreation areas.

Oaklands is located within the rapidly growing Moreton Bay region, an area benefitting from continued population growth, strong housing demand and a diminishing supply of new townhouse stock. The development is expected to capitalise on strong property investor demand coupled with owner-occupiers and growing infrastructure investment, and will provide a product with an average sale price more affordable than new house and land packages being delivered in the Morayfield local government area.

Why Trilogy Funds was the preferred partner

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

1. Ability to transition from bridging finance into full construction funding

Trilogy Funds initially funded the acquisition of part of the Oaklands site through a bridging facility. Following the acquisition of the adjoining property, Trilogy Funds successfully restructured the facility into a full construction loan, allowing both sites to be amalgamated and developed as a single project.

2. Recognition of a proven repeat borrower

Trilogy Funds’ familiarity with the Sponsor enabled efficient structuring and execution of this facility. Having already delivered successful outcomes through previous Trilogy Funds-financed projects, the Sponsor benefitted from a lender that understood its operating model, sales capability and development strategy.

3. Funding aligned with an integrated sales strategy

Rather than requiring substantial upfront pre-sales, Trilogy Funds structured the facility around achievable milestones aligned with the Sponsor’s demonstrated ability to generate sales throughout construction. Construction was subject to seven qualifying pre-sales, with further sales milestones supporting ongoing risk management.

Clear exit strategy

The primary exit strategy is the sale of completed townhouses, with approximately 51 sales required to fully repay the facility. The remaining stock provides an estimated security buffer of approximately $12.7 million.

The Sponsor’s demonstrated sales performance across current and completed projects provides additional confidence in the selldown strategy, while substantial forecast profits from other developments offer further support if required.

Discover how Trilogy Funds supports growing development businesses

From land acquisition and bridging finance through to largescale residential construction funding, Trilogy Funds partners with experienced sponsors to deliver flexible capital solutions.

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

Settled by Jack Mihaljovic.

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.