33-39 Racecourse Road, North Melbourne (33 NORTH)
Fast Facts:
Site: June 2014
Construction Loan: A$24.8 million
Project value: A$36.5 million
Project completion: January 2016
Syndicated Investment: A$6.7 million
About the transaction:
AUS Finance Group raised a total of $6.7 million in mezzanine funding via 3 tranches (firstly for site acquisition, secondly to finance construction and a third tranche to fund additional construction after the permit was expanded to allow another level of car-parking in the building). The investment syndicate providing the mezzanine funding consists of 55 separate investors, with investments ranging between A$100,000 to A$300,000. The majority of investors had an investment term of approximately 24 months.
Located on the north-eastern corner of Racecourse Rd very close to Flemington Road with each access to public transport, trams and trains (30% of residents use public transport. 2011 Census) Occupying a central location approximately 3 km from CBD and within close proximity to the Flemington Bridge Railway Station and Royal Melbourne Hospital.
The surrounding area boasts a wonder of attractions, including restaurants, cafes, designer studios, the Queen Victoria Market, the Errol Street retail village, Royal Park and the Royal Melbourne Zoo. There is easy access to local primary and secondary schools, sporting clubs and Universities.
Highlights:
A$6.7 million preferred equity provided by AUS Finance Group, with forecast returns to equity investors range between 16% p.a. to 88% p.a.
Permit allowed for the construction of a nine storey building comprising four offices and one retail/ food outlets plus 82 car parking.
Completed within the specified time frame, without the use of any contingencies.
For more information on this development project, please call AUS Finance Group on 1800 287 346