White & Partners has provided a 14 month first mortgage land and construction loan to develop the 11 Reina Street project in the Sydney suburb of North Bondi. The project is a luxury duplex development. Each duplex will have 4 bedrooms, 2 living areas, 2.5 bathrooms and outdoor areas comprising a swimming pool, paved entertainment area and lawn.
North Bondi is part of the affluent eastern suburbs region of Sydney, approximately 7 km east of the Sydney CBD. The Property is located within walking distance to the local shops and benefits from a level walk to Bondi Beach. Demand for residential property in the eastern suburbs is high due to its lifestyle, amenities, schools and proximity to the Sydney CBD. 11 Reina Street will be a rare new product in a market with limited supply.
At loan origination, a construction certificate for the project has been received. The builder and construction contract is expected to be finalised shortly. The developer of the project is a local building and construction family who has delivered similar scale residential projects in Sydney and Brisbane.
The loan facility was structured with a strong security package. In addition to the first mortgage over the property, a first mortgage has been established on a residential apartment in a neighbouring eastern suburb location. This apartment is valued at approximately $2.8 million. The first mortgage nature of the collateral was a key aspect which underpinned the appeal of the asset as a loan candidate to White & Partners.
White & Partners is actively working with the developer and independent Quantity Surveyor (QS) to initiate and subsequently manage the construction process. The Borrower has appointed Josh Allen and Ray White Double Bay to sell the project, with marketing scheduled to commence in March 2018.