A key challenge was identified with this client, a third-generation family development business specialising in high-end residential projects in Melbourne’s Bayside suburbs. The client was managing two development sites during the difficulties of COVID, facing delays from lockdowns, supply shortages, and labour issues. With existing construction facilities from a private lender nearing maturity and interest capitalisation nearly exhausted, the sponsors required a solution to complete the developments.

DIG Capital took the time to understand their specific challenges, the financial pressures they were facing, and their goal to sell the completed properties. A tailored refinancing strategy was developed, providing the necessary funding runway to ensure both projects were completed, offering the support needed to achieve their objectives.

DIG Capital’s approach to this client was grounded in understanding their specific challenges and providing a tailored solution that directly addressed the clients needs. The team worked closely with the sponsors to fully assess the clients situation, recognising gaps in their previous advisory experience. A hands-on, proactive approach was adopted, guiding the client through a strategic refinancing process that ensured a clear path to completion for both developments.

By leveraging strong relationships with non-bank lenders, more suitable financing options were secured to replace the existing facilities. This shift enabled the client to move forward without the looming pressure of expiring loan terms. Throughout the process, DIG Capital remained closely engaged with the sponsors, providing ongoing support and ensuring that the projects stayed on track. Additionally, the importance of selecting the right agents to market and sell the completed properties was emphasised, ensuring a smooth transition to the next phase of the development strategy.

As a result of strategic guidance from DIG Capital, the client now enjoys a more streamlined and effective approach to managing their debt and financing needs. With the restructured capital stack in place, the sponsors were able to complete the residential developments without the need for additional equity injection. This shift provided them with the financial stability needed to move forward with the sale of the properties, all while ensuring the completion of the projects as planned. Through ongoing support, the client is now positioned to realise the full potential of their developments and proceed with confidence.