Luxury townhouses, Takapuna
We recently had the pleasure of working with a leading real estate investment trust based in Auckland, New Zealand. The trust funds its projects with a mixture of private equity, investor funds, and traditional non-bank lending. The unusual funding structure required and out of the box solutions and ASAP Finance was proud to partner with them on their recent Northshore project.
The development itself comprised of ten luxury townhouses. Spread across three-stories the houses boasted generous stud heights of 2.7 meters and included standalone and semi-detached typologies.
We recently sat down with the trust’s directors to get a better understanding of why they decided to partner with ASAP – here is what they had to say:
Tell us about your journey to find a finance partner and some of the key drivers in your decision-making process to ultimately work with ASAP.
“…Our organization places great value building strong and reliable business partnerships with consistent performers – in this regard, ASAP Finance has proved to be an exceptional collaborator…When we started our journey looking for a funding partner it was clear that ASAP possessed several critical advantages over other lenders. From the outset, they advised us that they would not require a registered valuation (RV) or a quantity surveyor (QS) to fund our project – this removed some immediate obstacles to obtaining funding. Waiving the need to have a QS was particularly important as we knew that this would enable us to simplify our development process.”
You mentioned that ASAP Finance was an exceptional collaborator – can you expand on this?
“As a business owner you are always looking to the future and assessing how you can best position yourself for success. ASAP has been around since 2004 and has been a consistent performer in the development finance space. This pedigree played a significant role in our decision to partner with ASAP. When the market slows, and things get tough, a lot of ‘good time’ lenders leave the market. In part, it was ASAPs consistency which gave us the confidence we needed to move forward with our plans despite a looming downturn in the property market.”
What challenges did you face when seeking funding for your project?
“The nature of our business, specifically the way that raise equity for our projects, is somewhat unique. Our “equity” is a mix of our own funds as well as investor funds. Using external funds is not always simple as investors often have their own requirements regarding the security provided to them. ASAP Finance went above and beyond in this respect, customizing the suite of loan documents to ensure we could meet our investors’ requirements..”
Did you have any concerns partnering with ASAP
“ASAP is not the cheapest lender in the market, but this is made up for in the experience they bring to the table. An interesting moment for us was when property prices began to correct (during the term of our loan) which resulted in the LVR increasing. ASAP’s support was unwavering, and they continued to offer flexibility despite the increased risk, particularly with the way they were willing to advance funds.”
Can you expand on this?
“During the development, we encountered design-related issues which threatened to delay our project. However, ASAP allowed us to take partial drawdowns and prepayment options for building materials which unlocked the cashflow we needed to keep progressing the project. With their assistance, we were able to address these challenges head-on, implementing our design solutions and ensuring the successful completion of development.”
What did you like best about ASAPs service?
“One of the most commendable qualities of ASAP Finance is their consistency and prompt response to our inquiries. Regardless of whether the answer was positive or negative, ASAP will quickly respond to your query. They understand the importance of timely communication in the fast-paced industry of property development which allows you to make informed decisions.”
“Looking back, it is clear that the value delivered by the ASAP team far outweighed any concerns around funding costs. For property developers looking to become a long-term player in the property game, ASAP Finance is an outstanding choice.”