Structuring solutions in Strathmore
Senior Debt Partnership, $11.6m
Case Study by Tommy F
Local Developer
Project Finance
Lending into property development is not hiding behind our desks, or our spreadsheets – it’s about listening, visiting visits, staying involved and being ready to respond. At Jadig Finance, we support developers with finance for all stages of the project lifecycle, from land acquisition and pre-development holding, to construction debt and residual stock. Creating optimal, pragmatic and flexible solutions for our clients every step of the way.
Three years of strategic land funding
When our client spotted a prime piece of land in Strathmore, they knew it was an opportunity worth pursuing. However, the path to a planning outcome that was the site’s highest and best use, was anything but straightforward. What originally started as an apartment scheme with a component of ground floor retail was redesigned to a large, 18 townhouse project.
Recognising the potential and our client’s vision, we provided a senior land facility over a three-year period that allowed our client the breathing room needed to navigate the planning system without pressure.
Flexibility in construction finance
With plans approved, the next hurdle was bringing the project to life amidst a volatile construction landscape. At the time of commencement, many builders were reluctant to enter fixed price contracts. Our pragmatic approach and close relationship with our client meant we approached this with a flexible mindset – agreeing to fund a cost-plus construction contract. Unlike traditional lenders, we empowered our client by permitting all development costs and construction contingency to be self-funded to give further flexibility and more debt finance up-front.
Seamless transition to residual stock finance
As the townhouses neared completion, the typical wait for titles and off-the-plan settlements could have stalled momentum and compounded finance holding costs. But at Jadig, we’re not about sticking to the conventional playbook. We proactively rolled the construction facility into a residual stock loan ahead of titles being issued or the initial townhouses settling. This move provided our client with the flexibility to market the properties strategically, while reducing his interest costs, optimising returns without the usual financial constraints.
A partnership built on trust and results
Our journey with this developer isn’t a one-off success story; it’s a testament to a partnership forged over years of collaboration and mutual respect. Since 2014, we’ve stood side by side, navigating the highs and lows of the property market together. Projects like the Strathmore townhouses highlight our commitment to being more than just financiers – we’re invested in our clients’ success – ready to listen, be agile and go the distance.
At Jadig Finance, we are more than just a lender – we are passionate about building enduring relationships and delivering pragmatic solutions that make a real difference.
