Development Finance, $13m
Case Study by Adriano T
Family matters to Jadig. We always try to develop long withstanding relationships with our clients. We like to get our hands dirty, visit sites and be a part of process. The more informed we are, the better options we can offer our clients.
In March 2017 we partnered with a National Developer on a $13.25m, mixed-use, retail and commercial office building in the centre of the Hobart CBD. We already had a positive relationship with the developer which made us the first port of call. Having worked with them previously we understood their needs – they valued reliability, transparency and an ability to tailor financial options, so we kept this front of mind through the entire process. Working hand in hand with them instead of standing behind intimidating financial contracts comes naturally to us. Given the build-to-hold nature of the project, a mainstream lender would not have being able to provide them with the same approach. But we had confidence, due to the prior experience with the developer, reputation of the builder engaged, prime location and positive local conditions in Hobart, it felt positive for our investors.
We kicked off the project with a visit to Hobart, meeting with the builder, architect, quantity surveyor, client and local agent ensuring both the interests of the developer and investors were aligned. Having seen the site, met those who were involved, we were able to provide a strategic and tailored approach to the funding of the project.
Given our knowledge in property we understand most projects never go smoothly. Hobart was just one of those projects. It had a complicated demolition – being 481m2 of old bank building, it had unknown underground services and it was at risk of latent ground conditions. Unfortunately it was never going to be a straight forward construction process. These bumps in the road caused delays, but we were able to manage these variations and cost overruns in an efficient and timely manner. Completed in 25 months, our agile approach to Hobart allowed the project to push through with an efficient schedule, ultimately making all parties involved pleased with the outcome. Since completing Hobart we have partnered on two other projects with the same developer.