Case Study

$75.5M Industrial Development Finance

Senior facility arranged for a mixed-use industrial development in Melbourne's south-east

A private developer engaged Actum to arrange $75.5M of stretch senior funding for a mixed-use industrial project in Cheltenham, VIC. With limited pre-sales and limited delivery history under the new building entity, traditional lenders were reluctant to fund the project. Actum structured a tailored capital solution that preserved the client’s equity, secured a stretch senior facility with a non-bank lender, and enabled timely commencement of construction.

Date

Q4 2024

Sector

Real Estate

Finance

Construction Finance

Limited pre-sales and limited track record under new entity

The client, while experienced in industrial construction & development, had established a new construction entity with no formal delivery track record. Only 30% of stock was pre-sold, and equity reserves were constrained. The use of an owner-builder model introduced perceived delivery risk that excluded many traditional and non-bank lenders.

Structured to maximise leverage and preserve equity

Institutional outcome for a non-institutional borrower

Structured a $75.5M facility with 72% LVR, 94% LTC, and only 40% debt cover required from pre-sales.

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No cash-backed performance guarantees

Negotiated a security structure that replaced traditional guarantees with retentions, freeing up significant capital and reducing friction for the borrower.

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Delivered funding within tight timeframes

Actum secured a funding solution quickly, aligned with contract milestones and critical construction commencement dates.

Positioning the project and navigating lender risk appetite

Step 1

Conducted detailed validation of the client’s construction capability and delivery plan

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Step 2

Prepared robust transaction materials to support lender confidence

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Step 3

Identified and engaged lenders open to non-traditional structures

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Step 4

Negotiated favourable terms and managed the funding process through to settlement

“Without Actum’s support, this project would have a significantly worse commercial outcome. Their ability to understand the lender landscape, negotiate market leading terms and structure conditions around our constraints was outstanding.”

Melbourne

Private Developer