Bold solutions in Balwyn North

Stretched Senior Development Finance, $7.3m

Case Study by Tommy F

Local Developer
7 Townhouses

When the going gets tough, we step up. It’s why our clients tend to stick around. It’s also why our clients trust us to take a commercial approach when the waters get murky. In late 2021 – in the thick of lockdowns disruptions, supply chain issues, and skyrocketing construction costs—a borrower who was known to Jadig asked to partner with us. We were ready to lend a hand.

Our client was a capable property developer in Melbourne, running an operation we knew and respected. They were backed by a sound team, comprising SEMZ (Development/Project Management), Samssons Builders, C Kairouz Architects and Stamford Capital. The project catered to an affordable segment of Balwyn North’s housing market, delivering townhouses at good price points across the road to Kew High School. We had a good working relationship with all parties and had faith in the viability of the proposed scheme, being seven-townhouses over a basement.

Stage 1 was an acquisition and pre-development loan to assist the client to settle the property. Next, a seamless transition into a stretched senior development loan to fund the construction of the townhouses at a high LVR of 75%. Understanding the importance of a quality project team helps mitigate risk, allowing us to offer high leverage. We trusted and knew the developer was strong, and the presales in the project allowed us to be quick on our feet and think pragmatically.

By 2023, the project was not just out of the woods but successfully completed. We passed the baton to our flagship Simple Property Loans product, refinancing the final townhouse remaining in a residual stock loan at a flexible & sharp fixed rate of 8.99%. On time, on budget, and a shining example of success, we were able to use our market savvy to look through near-term market headwinds and arrive at a commercially sound arrangement.

We looked after our client because building trust matters and had the product offerings to suit.

This has been reflected in Jon’s feedback: “Adam and the team at Jadig have been great to work with and we really appreciate the aligned approach to the way they go about things. Their genuine care and passion for their customers and people they work with has truly come through. We look forward to collaborating on more projects together into the future.”