Property developer Alfasi Group has secured a $150 million construction finance facility for the 510 Church Street Development in Cremorne, Melbourne.
Australian-based investment manager and property financier Merricks Capital completed the deal with Alfasi.
As part of the development, a nine-storey office building with two levels of basement parking and smart building technology will be constructed.
Kane Construction was appointed as the builder for the project, which was designed by Cox Architecture. Works began on the project in 2019.
The COVID-19 pandemic and related economic downturn made it more difficult to source the financing for the development.
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Merricks Capital Managing Director (Investments) Andrew Torrington said he is proud of being able to step in to keep the wheels of the Australian construction industry turning.
“We are delighted to be able to continue to support high quality projects and play an integral part in keeping development opportunities a reality during challenging times,” he said.
“The 510 Church Street development is an example of a complex, challenging deal which saw many potential financiers back out. However, as a fully-funded, fully-operational lender we have the stability and flexibility to work with borrowers to find a debt structure which suits their individual circumstances and the volatile market conditions.
“The project itself is an exciting one to be a part of. Cremorne is an up and coming business district and we expect this A-grade development to draw high profile tenants out of the Melbourne CBD.”