No doubt there is a challenging sales environment with more discerning off-the plan apartment purchasers scrutinising every aspect of a project.
Sophisticated purchasers require strong conviction that a project will proceed and construction won’t be delayed—they are undertaking their own due diligence on the entire project team and often seek confirmation of project funding as part of their decision-making tree.
Drew Group’s Lagoon Residence at Main Beach is a two-tower 259 residential apartment project with an end value of $395 million, located 50m from the famed Tedder Avenue dining and entertainment strip, brings together a highly reputable and experienced project team of consultants and partners, which has underpinned its strong performance to date.
Early works construction began on schedule last month with Australia’s largest privately owned builder, Hutchinson Builders.
Leading Gold Coast sales agent Pezet Matheson achieved a strong result on pre-sales, achieving $120 million worth of sales. Pleasingly, sales momentum and enquiries are continuing into the construction phase from local and interstate buyers who are not only attracted to the premium product but the excellent offering of amenity at their doorstep.
Commercial real estate non-bank lender YieldStack Capital Partners provided the $270 million senior debt construction financing, formally cementing its lending presence in south-east Queensland and northern New South Wales.
Drew Group managing director Jon Drew said he was excited to bring Lagoon Main Beach to fruition with the support of YieldStack and Hutchinson Builders.
“Hutchinson has an enviable reputation as a builder with a quality of standards that gives our buyers confidence to commit to the project off the plan. With the financial backing of YieldStack, we now have a world-class team to deliver our vision for this wonderful site,” Drew said.
YieldStack Capital Partners investment director Neil Kumar said: “YieldStack was engaged very early in the process as the finance partner which allowed us to tailor a funding solution for Lagoon.
“Lagoon demonstrates that despite the market conditions, we have a strong appetite for quality sponsors with exceptional track record and their quality projects backed by strong underlying fundamentals”.
YieldStack are funding a number of projects in the region given forecast population growth in south-east Queensland and northern NSW. It is also financing another project—Podia’s Bonobo by Raes at Byron Bay, which is backed by Centennial Property Group.
“We’re certainly not bearish about these markets,” Kumar said.
“With support from global investors, YieldStack continues to have an appetite for the Gold Coast and similar lifestyle locations, especially in light of steady population growth, solid demand and limited supply in the market.
“What we like about the Gold Coast market is that we are backing good quality developers who have experience, strong balance sheets, and have partnered with top-tier builders like Hutchinson Builders with a record of delivering projects through cycles.” Kumar said.
Article source: Queensland Property Investor