Willing and able in Williamstown.
Development Finance, $15m
Case Study by Tommy F
When the unexpected happens, it can help to call Jadig Finance. That was certainly the experience of a developer we helped out of a sticky situation in June 2021.
We were approached by one of our long-time relationship brokers on behalf of the developer. The developer – our client – had a residential project in Williamstown that was mid-construction and he was running short of funds.
Essentially, he had been led down the garden path with a major bank, for reasons that were out of his control. As a result, he started to fund the build of his 23-apartment project using equity reserves while waiting for the balance of funds to arrive from the completion of another apartment project. This was all was working smoothly until Covid-19 arrived, stretching timelines and his resources.
His builder was a long-term friend and business partner who he didn’t want to disappoint by stalling the project and he had eager purchasers wanting to settle on their new homes and investment properties.
That’s where Jadig came in – we like helping and we understand the importance of long-term relationships. With our own development experience, we know firsthand the extra work it takes to turn around a slow-moving project. Especially when there are additional factors such as funding pain mid-construction, a financier coming in mid-way through the process, and not having the comfort of months of lead time, solid due diligence, and input in the construction contract.
But all of that that didn’t matter because we were willing to meet the challenge. In the space of a few weeks, we worked out and settled a pragmatic solution that satisfied the broker, the builder, the developer and Jadig, allowing the project to continue along uninterrupted.
Instead of structuring a typical construction facility that would have put a handbrake on momentum and added another layer of funding complexity, we provided an equity-release facility acknowledging the experience and track record of the client, and the value of the work completed to do date.
We can happily say that the project is now complete, the loan fully repaid, and all units now occupied by satisfied purchasers.