White & Partners Debt Management (WPDM) has provided a ten month construction loan to Blue Sky’s Duke Apartment Project in the Brisbane suburb of Kangaroo Point. The project involves the development of a 15 storey, 125 apartment tower complex.
At settlement of the loan, the project is well advanced, with the level 14 slab completed and fitout of the building underway. As a consequence, construction risk is considerably lower than a typical development financing.
Approximately 50% of the apartments have been presold, which provides over 70% net presales loan cover. The borrower is targeting 100% loan cover within 5 months of first draw-down and is making excellent progress.
The loan facility was structured as a typical bank financing with a strong security package. White & Partners Debt Management is actively monitoring progress on the project, with monthly draw downs subject to sign off by an independent Quantity Surveyor.