Liquidity issues faced by the original financier had left this otherwise sound development in a precarious financial position and construction had effectively ceased.
The subsequent receivership of the original lender added further tiers of complexity to the situation but the introduction of CapitalGroup and some of its key partners provided a way forward.
A senior bank lender was needed
to support the project and
significant “equity capital” needed
to be introduced.
Through its strong relationship with Senior lenders, CapitalGroup was able to structure a solution and gain support both from a leading bank and from the project receiver who quickly endorsed the structure as by far the best way forward.
A key part of the new financing structure was the introduction of an underwrite panel to underwrite part of the development’s un-sold stock. CapitalGroup arranged this panel and then introduced a tranche of subordinated capital to further support the project.
All fundamentals for the project
were sound – the quality of design and build, the reputation of the construction company involved
and the fact that remaining stock was being offered into the market
at price values for which there
was growing demand and limited competing product.
CapitalGroup saw the potential of the project’s successful completion and through a project tailored approach was able to cut through a myriad of negatives and complexity providing a highly successful solution and outcome.
Proximity was completed on time and within budget thanks to the efforts of the entire team. A large percentage of the presales settled which in itself was a significant achievement given the Global Financial Crises that was occurring. CapitalGroup worked closely with the project team to successfully sell down the remaining unsold stock in what was a very difficult market and thereby providing a very good result for not only CapitalGroup investors but also for the ultimate owners of the development.