Investment Deal Summary

Suburb: Redcliffe, QLD
Asset Class: Construction
Property Value: $6.04 million  
LVR: 65%
Development Completion: August 2022
Number of investors: 46
Average investment amount: $265K
Coupon Rate: 7.30%

The Opportunity

Located centrally in Redcliffe (Queensland) is this 14 boutique apartments and ground-level retail space development. Aptly named ‘Sunset on Violet’, the complex provides unrivalled views of Moreton Bay. Within minutes’ walk of Redcliffe Jetty and Redcliffe Parade, the boutique complex provided a great opportunity for AltX investors to invest in the Moreton Bay region.

The Build

For this Redcliffe development in Queensland, we assisted the borrower at the land purchase phase of the development. Construction took place at a time when the area was suffering from heavy rainfall. This along with trade shortages and Covid-19 slightly delayed completion.  The project team was able to effectively manage the credit risk of the deal through proactive check-ins with local agents, working closely with the developer on pre-sales strategies and on any latent conditions related to the project. The flexible loan structures provided additional equity buffer to cater for any increase in building costs and interest rates.

The Result 

The developer was able to see the project through to the finish line in August 2022. From inception to completion, AltX was there at every step of the way to provide regular updates and reports to the 46 investors. 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 is similar to those that have been included in the recently launched Assetline Senior Debt Construction Fund No. 4 (ALCF4) managed debt fund. ALCF4 offers diversified exposure to short duration 1st mortgage-backed construction loans.