Since 2009, Dorado has provided over $450 million in finance to 139 projects across five States.

First
Mortgage

First Mortgage

Case No 1

A developer was finalising a development application for an integrated medical facility and childcare centre.

Dorado Property property finance funding, development finance case study

Victoria, Australia

As the developer had a relatively limited track record and was yet to secure any pre-sales for the medical facility, senior bank funding was not a viable option to assist with the settlement of the site in an outer suburb of Melbourne.

Dorado undertook a review of the project and, being located within a key growth corridor which has seen both considerable population growth and residential development in recent years, recognised its potential. Following our comprehensive due diligence process, Dorado assessed the project’s viability and drew upon our previous funding experience within the healthcare and childcare sectors to provide first mortgage funding to the developer.

This enabled the developer to settle the site. They have since progressed the development application and are currently seeking tenders from builders for the project’s construction.

First Mortgage

Case No 2

An experienced developer was looking to settle on a large piece of land in a unique location.

Dorado Property property finance, income asset funding case study

Western Australia, Australia

The development was yet to achieve planning approval and did not have the requisite pre-sales that a senior bank would require.

Dorado worked with the developer to understand how the proposal sat within the local planning guidelines and assess their marketing proposal to sell the completed lots as house and land packages. As a result, Dorado enabled the developer to settle on the site and commence civil works.

First Mortgage

Case No 3

A developer was underway with an over 55’s lifestyle development.

Dorado Property property finance, development funding case study

Western Australia, Australia

The developer had commenced civil construction works on a project prior to settling on it, but required a first mortgage loan to settle the land and contribute to further construction works in the first and second stages. The nature of the project made it difficult to obtain senior lender finance.

Dorado applied its experience and expertise to assess the quality of the pre-sales together with fully understanding the feasibility and viability of the project. This enabled a first mortgage solution to be put forward, which allowed the project to proceed in a timely manner.

First Mortgage

Case No 4

A developer had completed the construction of 195 apartments. Prior to this approximately 150 apartments were pre-sold leaving the remaining 45 apartments unsold.

Dorado Property property finance funding, development finance case study

The developer was able to repay the majority of their construction facility with the existing pre-sales, however several of these pre-sales were to FIRB approved buyers and would require additional time to complete settlement. Further to this the developer was wanting release part of their equity within the unsold apartments to complete the purchase of a new project site.

Dorado provided a first mortgage funding solution secured over the unsettled and unsold apartments. Proceeds from the Dorado loan went toward repaying the remaining balance of the construction loan and to the developer to purchase the new project site. The Dorado facility remained whilst the developer marketed and sold the remaining apartments.

Mezzanine
Debt

Mezzanine Debt

Case No 5

A leading Brisbane based developer was undertaking the construction of a townhouse project in an outer suburb of Brisbane.

Dorado Property property finance, development funding case study

Queensland, Australia

The project’s appointed builder had recently gone into administration and the developer was focusing upon securing a replacement. The developer required a mezzanine facility to continue the construction of the townhouse. Despite the additional risk associated with the need to engage a new head contractor, Dorado were confident that this could be achieved without any material increase in construction costs given that on-site works had yet to commence.

After successfully completing our detailed due diligence process, Dorado agreed to provide a mezzanine funding solution, whereby funds were drawn contemporaneously with the financial close of the senior debt facility and the execution of a fixed-price contract with the new builder.

Mezzanine Debt

Case No 6

A developer had begun construction of 148 apartments with ground level retail.

Dorado Property property finance, development finance case study

Early works to the first floor of the building were partially completed before the project’s builder was replaced following a building licence issue. Concurrently, the developer was finalising a senior construction loan and seeking to refinance the existing land facility.

Following a detailed review of the project, and confident in the developer’s track record, Dorado provided a mezzanine debt facility. This enabled the developer to refinance the existing land loan and facilitated the settlement of the senior construction loan.

Preferred/Structured
Equity

Preferred/Structured Equity

Case No 7

A rapidly expanding developer builder had a number of medium size apartment projects at various stages of completion.

Dorado Property property finance, development funding case study

This was stretching the availability of equity funds that the developer was required to contribute to any new project. Further, as the developer was also the builder, banks specified that any non-bank funding would need to be ‘equity-like’ rather than debt. This was prohibiting the commencement of their next 40 apartment and three commercial unit development.

Dorado provided a funding solution in the form of preference equity. The documentation and structure was satisfactory to the senior bank. In this instance, the Dorado equity and fixed return was in preference to the developer’s equity. This enabled the developer to undertake the project and grow its business.

Preferred/Structured Equity

Case No 8

Dorado was approached by a highly regarded boutique fund management firm specialising in real estate investment opportunities to provide a cornerstone preferred equity position in the development of an integrated healthcare facility in Brisbane’s middle ring.

Dorado Property property finance, preferred equity funding case study

Queensland, Australia

Dorado recognised the merit in partnering with a highly experienced group with a strong track record in the delivery, lease-up, and sale of commercial property assets.
We undertook extensive due diligence of the proposed project and were satisfied that existing supply constraints within the area in tandem with the area’s continuing population growth would support strong underlying demand for medical space in the centre.

Dorado’s early equity commitment enabled the developer to focus their efforts upon securing senior construction funding for the project, additional pre-leases to meet the senior funder’s pre-lease hurdle, and execution of the construction contract.

Preferred/Structured Equity

Case No 9

A developer wanted to release equity prior to completion of a project.

Dorado Property property finance, development finance case study

Western Australia, Australia

The boutique apartment project was substantially complete and had secured several pre-sales, but the developer was looking to release equity to fund other project acquisitions.

Dorado Property was able to quickly conduct due diligence to determine the status of the project and work through the legal technicalities of bringing funds into a project that was underway with existing investors and financing arrangements.

This allowed the developer to release the equity early and grow the business.

Preferred/Structured Equity

Case No 10

An existing investor within an underway project required liquidity.

Dorado Property property finance, income asset funding case study

Western Australia, Australia

A developer who Dorado had funded previously sought funding to provide liquidity for an existing investor.

Dorado conducted due diligence on the substantially underway project, which was 80% complete, liaised with the existing senior and mezzanine lenders, and put forward a subordinated unsecured debt solution that provided the liquidity required.