Behind the Deal: Preston, VIC | $24.4m

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This developer had a vision: a community that would set new benchmarks for quality and sustainability in up-and-coming Preston.

And with Assetline Capitals’s backing, Oak on High is now breaking apartment price records in the neighbourhood. 

When Grant Rheuben, Senior Finance Broker with Loan Market, first brought the scenario to Assetline Capital, he knew it could be a fundable deal. Almost a third of the apartments already had pre-sale commitments, and the development has an ideal high street location just 10km from the CBD. Positioned on the urban fringe of vibrant Thornbury and Northcote, it’s close to cafes and restaurants, trams and trains. 

The developer had also put a lot of thought into the amenity and sustainability of the 62-apartment community. Its apartments are NatHERS-rated up to 8.7 Stars, and there are plans for a rooftop playground, outdoor movie nights, and morning yoga sessions. Plus, he had a strong and experienced construction and project management team in place. 

There was just one catch. This was the developer’s first development of such significant scale, having worked primarily on townhomes in the past. Plus, after pushing settlement back during 2020, time was running out to finalise the land purchase and start construction. He knew this meant working with a private lender – and he wanted to diversify his funding risk and work with Assetline Capital.

The details of the deal

Location

Preston, VIC

Loan amount

$24.4 million

Term

21 months

LVR

70%

Purpose

Construction

Product

Construction finance

Type of development

Development of 62 residential apartments, 2 retail spaces

Exit strategy

Pre-sales and selldown post-construction, retaining some stock

I was really impressed with how quickly Assetline Capital said yes. Working with Assetline Capital gives me confidence I can do deals at this scale – I know they won’t move the goal posts.”

Grant Rheuben, Loan Market

After seeing the comprehensive proposal Grant had pulled together, Assetline Capital’s George Khoury immediately flew to Melbourne. He knew the developer needed certainty. And then his construction lending team executed the deal at lightning speed. One year later, the project is on track and pre-sales have reached 75%. Assetline Capital provides regular drawdown payments within 24 hours, which gives the building team confidence. When an issue with contaminated soil emerged, it was handled smoothly – because an environmental overlay had been budgeted into the contingencies during the initial due diligence. This rare combination of speed, flexibility and construction expertise has made Assetline Capital a preferred lender for this developer.

This was the largest deal to date for both the broker and the developer. And with the confidence of knowing he had Assetline Capital’s backing, the developer will be able to realise his vision for this sustainable Preston community.

If you’d like to discuss a construction, bridging or long-term loan scenario with us, please get in touch with our team.

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