Solido today announced that it has co-invested 50/50 with Dexus Real Estate Partnership 1 (DREP1 or the Fund) in a Senior Construction Financing Facility for a Mixed Use Residential Development located in the prime Melbourne suburb of Elsternwick.
Solido Capital originated the opportunity and is the facility agent. This initial joint investment between DREP1 and Solido provides the Dexus Fund with the opportunity to co-invest with an experienced Non-Bank provider of credit for residential property development projects and includes potential access to further credit deal flow.
This is the first joint investment for the Dexus Fund and Solido however there is potential for further co-investment opportunities in the pipeline in Greater Sydney, Melbourne and SE Queensland targeting facilities between $30-$100m in scale.
This senior finance facility is for the construction of a permit-approved mixed use development project in Elsternwick, Victoria. The project is primarily residential, comprising 99 apartments, four retail suites and three office suites. Construction commenced in recent months.
Solido is led by co-founders Beau Quarry, who has deep risk/credit management and development experience, and Michael Corcoran, who is a 30 year veteran of the Australian Residential Development Industry and is a former National & NSW President of the Urban Development Industry of Australia (UDIA). Solido has a Wholesale Investor AFSL and a strong following of high net worth and Family Office investors, as well as its own Balance Sheet of more than $70m.
Solido Managing Director, Beau Quarry said:
“Solido was launched in 2016 with a goal to be the preferred Non-Bank Lender to quality developers and we have now written more than $420m in facilities. The Solido and Dexus Fund co-investment will enable Solido to originate opportunities for larger facilities ($30-$100m) and it will also ensure that we can continue to fund the growth of our existing loyal Developer clients.”
Solido has multiple developer clients who rate Solido as their preferred Lender.
“The Elsternwick facility is the fourth facility that we have provided to this client with the previous 3 facilities being successfully repaid ahead of program. For us, repeat business is the ultimate measure of client satisfaction. Additionally we have a growing pool of Wholesale Investors who understand the importance of investing with a Group who has deep Development delivery experience, as well as credit and risk management capability” said Beau Quarry.
Solido Executive Director, Michael Corcoran, said
“We are unique in the Development Financing industry given the deep development delivery experience within our ranks. This enables us to tap in to our National network to originate Financing opportunities direct and to undertake high standards of market, development and developer due diligence. This allows Solido to better identify & mitigate the risks on the Developments we finance and also to be better understand the challenges our developer clients will likely face in everchanging markets.”
