New South Wales, Australia

Following the settlement of these land facilities, the investor intended to amalgamate the land parcels into larger lots and establish biodiversity stewardships over the new sites. This would allow the generation of biodiversity offset credits, which the investor could then sell in the market to those with offset responsibilities (e.g. property developers and government entities).

Banks would only assess the transaction under traditional ‘landbanking’ criteria, which meant interest could not be capitalised, gearing was reduced, and no account was paid for any proceeds of biocredit sales. On the other hand, Dorado did value these biocredits’ potential, and after a thorough review of the appropriate environmental legislation and feasibility of the investor’s strategy, we provided a first mortgage funding solution secured over the rural lots to establish the biodiversity stewardships.