Trilogy Funds provides a $12.08 million construction facility to deliver a boutique luxury development in one of Sydney’s most prestigious suburbs.

Project overview

Trilogy Funds recently provided a $12.08 million construction finance facility to assist an experienced Sponsor refinance an existing lender and deliver a boutique luxury residential development in one of Sydney’s most tightly held riverside suburbs. The facility combined development funding with additional residential security, delivering a flexible financing solution that balanced the Sponsor’s objectives while maintaining a conservative risk profile.

The facility supports the construction of four premium dwellings across two duplex buildings in Putney, 14 kilometres northwest of the Sydney CBD. The development will deliver:

• Four to five bedrooms per dwelling;
• Open plan living and entertaining areas;
• Private swimming pools;
• Basement accommodation with premium lifestyle features including gyms, saunas or home cinemas;
• Double car parking; and
• High-end finishes throughout.

Importantly, the project benefits from an approved Complying Development Certificate, reducing planning risk and providing greater certainty around timing and delivery.

The Sponsor has a proven track record delivering similar premium residential projects within the local market, providing a strong understanding of buyer demand, pricing dynamics and delivery requirements. Established relationships with consultants and contractors provided deeper support to efficiently execute the project

Subsequently, the project aims to capitalise on several market characteristics, including:

• Premium Putney location on Sydney’s northern riverside corridor;
• Established owner-occupier demographic;
• Strong demand for boutique duplex housing;
• Limited supply of newly completed luxury, dual occupancy product; and
• Close proximity to schools, shopping centres, transport links and recreational facilities.

How Trilogy Funds delivered

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

1. Flexible funding from refinance through to construction

Trilogy Funds structured a facility that simultaneously refinanced existing debt secured against the development site, repaid debt secured against an additional residential property and provided funding for the construction of the four new dwellings. This enabled the Sponsor to consolidate multiple funding requirements under a single facility and move seamlessly into the construction phase without delay.

2. Recognition of significant Sponsor commitment

Prior to settlement, the Sponsor had already contributed more than $1.1 million toward the project through subdivision works, consultant fees, engineering, approvals and civil works. This substantial equity contribution demonstrated meaningful Sponsor alignment and commitment to the success of the project, while reducing reliance on external capital.

3. Financing without reliance on presales

The facility was structured without a presale requirement, providing the Sponsor with greater flexibility around the timing of sales. Given the premium owner-occupier market, demand is often strongest once buyers can inspect the quality of the finished product, allowing value to be maximised at completion.

4. Security structure supporting multiple exit pathways

In addition to the development site, Trilogy Funds received security over a completed residential property in Western Sydney. This strengthened the overall security position while supporting multiple exit pathways, including the ability to retain existing stock, and refinance where market conditions support that outcome.

Clear and disciplined exit strategy

The primary exit strategy involves either the sale of at least two completed dwellings and refinance of the remaining properties if market conditions support retention, or sell all four dwellings if market conditions support this strategy.

Discover how Trilogy Funds supports boutique developments

Whether it’s to deliver luxury duplexes, townhouse communities or infill residential projects, Trilogy Funds works with experienced developers to provide flexible financing solutions tailored to each project’s unique requirements.

Request an indicative offer at 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.