Investment deal spotlight: Mount Colah, NSW
December 13, 2022
December 13, 2022
December 13, 2022
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Nestled in Sydney's coveted North Shore, this development of thirteen townhouses in Mount Colah exemplifies modern design, superb finishes and a covetable location for young families.
A townhouse development that brings designer living to a family-friendly lifestyle
Investment Deal Summary
Suburb: Mount Colah, NSW
Asset Class: Construction
Property Value: $12.15 million
LVR: 63%
Development Completion: December 2022
Coupon Rate: 8.76%
The Opportunity
Nestled in Sydney’s coveted North Shore, this development of 13 townhouses in Mount Colah exemplifies modern design, superb finishes and a covetable location for young families – making them attractive properties for investors or owner-occupied when completed.Many aspects of the project stood out to the AltX team including the borrower’s wealth of similar experience, a reputable builder on-board, strong location and three pre-sales before construction.
The Build
The 13 townhouses are made up of three-, four- and five-bedroom dwellings with dedicated study spaces, penthouse-style main bedrooms, basement parking and outdoor rear courtyards. As part of AltX’s active lending approach, our team visited many of the borrower’s previous developments, diligently checking for defects and speaking to homeowners and project managers. Like many developments that commenced in 2020, the build was hit with labour shortages and supply delays due to Covid-19. These factors along with some internal design changes, resulted in an extension given in June 2022. AltX’s construction team carried out an additional due diligence before approving the extension to ensure everything was up-to-date and on track.
The Result
AltX’s ability to work closely with the developer throughout this time ensured the project was delivered within budget and before the extension expired. We were well-positioned to support investors through this deal, drawing upon our team’s extensive experience in financial services, real estate and lending industries to tackle challenges and take advantage of the changing environment in the construction industry.This deal was included in the Assetline Senior Debt Construction Fund No. 4 (ALCF4) managed debt fund. ALCF4 offered diversified exposure to short duration 1st mortgage-backed construction loans with an 8.76% p.a. Target Net Investor Return (Variable Rate).
A townhouse development that brings designer living to a family-friendly lifestyle
Investment Deal Summary
Suburb: Mount Colah, NSW
Asset Class: Construction
Property Value: $12.15 million
LVR: 63%
Development Completion: December 2022
Coupon Rate: 8.76%
The Opportunity
Nestled in Sydney’s coveted North Shore, this development of 13 townhouses in Mount Colah exemplifies modern design, superb finishes and a covetable location for young families – making them attractive properties for investors or owner-occupied when completed.Many aspects of the project stood out to the AltX team including the borrower’s wealth of similar experience, a reputable builder on-board, strong location and three pre-sales before construction.
The Build
The 13 townhouses are made up of three-, four- and five-bedroom dwellings with dedicated study spaces, penthouse-style main bedrooms, basement parking and outdoor rear courtyards. As part of AltX’s active lending approach, our team visited many of the borrower’s previous developments, diligently checking for defects and speaking to homeowners and project managers. Like many developments that commenced in 2020, the build was hit with labour shortages and supply delays due to Covid-19. These factors along with some internal design changes, resulted in an extension given in June 2022. AltX’s construction team carried out an additional due diligence before approving the extension to ensure everything was up-to-date and on track.
The Result
AltX’s ability to work closely with the developer throughout this time ensured the project was delivered within budget and before the extension expired. We were well-positioned to support investors through this deal, drawing upon our team’s extensive experience in financial services, real estate and lending industries to tackle challenges and take advantage of the changing environment in the construction industry.This deal was included in the Assetline Senior Debt Construction Fund No. 4 (ALCF4) managed debt fund. ALCF4 offered diversified exposure to short duration 1st mortgage-backed construction loans with an 8.76% p.a. Target Net Investor Return (Variable Rate).
