Investment Deal Summary

Suburb: Willoughby, NSW
Asset Class: Construction
Property Value: $10.76 million  
LVR: 65%
Development Completion: 2020
Coupon Rate: 8% p.a.

The Opportunity

With a nod to Willoughby’s rich history of crafted brick buildings, this four-story corner build provided a great opportunity for AltX investors to invest in the Lower North Shore. The location offers unrivalled convenience with footstep access to express buses to the CBD and Chatswood, not to mention a variety of fine dining and day-to-day amenities along Willoughby Road.

With 25 years of experience, this local Willoughby developer had intimate knowledge and experience working on both commercial and residential developments in the area. This rich development history coupled with AltX’s in-house project management team ensured the project was delivered within budget and in a timely manner.

The Build

Combining modern luxury with a nod to the location’s historical heritage, the four-story build comprises of 17 boutique one, two and three-bedroom apartments, two commercial suites and basement parking. AltX assisted the borrower at the land purchase phase of the development, with the exit strategy being a build-to-rent model on the remaining stock. 

While the site was situated on a rock bed, our stringent due diligence proved that the builder had prior experience dealing with this. 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.

This due diligence is supported by AltX’s active lending approach to construction debt project management, helps protect investor capital and deliver quality assets to market.

The Result 

Construction was completed on schedule, with the AltX team playing an active role from inception to completion resulting in 100% of all capital returned to investors.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.