GRAYA is one of Brisbane’s most high-profile residential building and development companies, having completed many iconic residences over the past few years. Headed up by brothers Rob and Andrew Gray they wanted to branch out and bring their construction and design pedigree into the multi-residential space.
Collaborating with Frank Developments, Frank Licastro also brought significant experience with high-end residential dwellings in inner-Brisbane, to create the joint venture GRAYA + Frank.
The Approach
Having purchased a site in New Farm for their first multi-residential development, Maison, they approached STAC Capital to assist them in attaining the funding required for what is to be a six-storey tower, comprising five full-floor apartments with a parking garage and rooftop area.
STAC Capital’s Dale Sparke coordinated a competitive tendering process that included both traditional bank construction funding and non-bank finance, which would present various hurdles and benefits, particularly in regards to pre-sales, leverage and cost of debt.
Furthermore, GRAYA + Frank had a preference to use a lender who would support their funding requirements not only on this project but also into the future with several projects in the pipeline.
The Outcome
As a result of undertaking the tender process, STAC managed to negotiate a market-leading deal with a Big 4 Bank – with a reduced pre-sale coverage hurdle of less than 80% as well as an attractive leverage position.
Although other options on the table were also highly-competitive and attractive, a cost/benefit analysis and detailed comparison found the terms to make undeniable sense.
Maison is now rapidly approaching completion and we’re looking forward to sharing the finished results.
