Inner Melbourne Residential Development - Multiple funding solutions
Over a three year period CVS Lane provided a range of funding solutions to assist a client deliver a boutique residential development, consisting of 13 whole-floor apartments.
Once development approval was granted for the inner Melbourne project, CVS Lane agreed to provide a $20.25 million first mortgage construction facility. As per common industry risk management practice, this was subject to the client achieving an agreed number of qualifying pre-sales.
CVS Lane agreed to provide a $20.25 million first mortgage construction facility once development approval was granted, subject to the client achieving an agreed number of qualifying pre-sales – as per common industry risk management practice.
A tight deadline for the commencement of construction (as agreed with the appointed builder) meant that the client was unlikely to meet the qualifying pre-sales target, which risked causing delays to the ultimate completion of the project.
CVS Lane then assisted the client in satisfying the pre-sales condition by arranging five renounceable sales contracts. The renounceable sales contracts provide for the sale of the apartments, at a discount, if they are not sold on the open market. While CVS Lane had full confidence the apartments would sell at or above market value, the renounceable sales facility ensured the project remained on schedule by assisting the client to meet the pre-sales target, thus allowing for construction to begin, whilst the client marketed and sold the remaining apartments.
The facility provided both financier and the borrower with a good degree of certainty.
At this point, CVS Lane’s $20.25 million first mortgage construction facility was triggered and the project began on schedule and ultimately, the remaining apartments were sold on market.
Subsequently, following practical completion of the project in late 2021, CVS Lane provided a residual stock facility, enabling the client to repatriate existing equity in the project to pursue other projects which continued for the few remaining unsold or unleased apartments.
Brisbane CBD Residential Development - Multiple funding solutions
A Queensland-based client acquired a site in central Brisbane, with plans in place for a boutique eight-storey residential development.
CVS Lane provided multiple funding solutions over a four-year period in order to assist the client meet several project milestones.
First, CVS Lane provided a $4.79 million first mortgage land facility to assist with settlement of the property before converting to a $32.79 million first mortgage construction facility to help fund the project’s development.
Once the project was complete, CVS Lane provided a $19.71 residual stock facility to assist the client to settle 28 unsold apartments and refinance the original construction facility.
In 2018 a CVS Lane client embarked on a significant mixed used development in southeast Melbourne, comprising 245 apartments, 25 townhouses, 106 serviced apartments, 545 car parks and around 3,227 square metres of retail and commercial space – across three buildings ranging from four to 11 levels.
CVS Lane has played a key role in the delivery of this project to date, providing a range of funding solutions and introducing other financiers to partner on this complex project. CVS worked closely with the client to carefully and successfully manage risk for all parties.
CVS Lane facilities included an initial $21 million first mortgage land facility, a $130 million syndicated first mortgage construction facility, and a $64 million residual stock facility (for both residential and commercial components) upon project completion in 2021.
CVS Lane settled on its first deal with a New Zealand-based client in early 2022
We provided a NZD$10 million first mortgage construction facility for the development of eight “New York loft” style boutique townhouses in the Auckland beachside suburb of Belmont.
Working with a team of local experts, CVS Lane was able to identify and execute the opportunity and commence building a valuable relationship with an up-and-coming New Zealand based development company.