Qualitas loans $33.5m for luxury apartments
Real estate investment management firm, Qualitas, has partnered with property developer, BPM Group, to loan $33.5 million for a $300 million Shadow Play apartment development in Melbourne.
The firm would provide funding for the 46-level, 486-apartment complex, along with Westpac and Bankwest.
Qualitas managing director of real estate, Tim Johansen, said the development had been significantly derisked.
"BPM has invested heavily in the design and marketing of Shadow Play to ensure that it's a sought-after, premium offering that stands out in the market," he said.
"As a result, it has already secured an impressive 75 per cent of the project in pre-sales. BPM has also partnered with a quality contractor, the ICON Group, which has a strong track record in these types of projects."
The mezzanine loan would lie in Qualitas' debt fund and its opportunity fund, which recently made its second close after launching late last year. Johansen said that in the current market, where banks were rationing credit, demand for alternative funding was high.
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