29 March 2022
Wingate has established a $350M residual stock warehouse facility, with up to $200M of senior financing to be provided by Goldman Sachs, to support its origination of residual stock funding for property developers, creating one of the first and largest securitisable residual stock programs in Australia.
“The funding program will support high-quality property developers who are holding residual stock from completed construction projects,” said Mark Harrison, Managing Director of Wingate Property. “These developers have complex capital needs that traditional sources of funding are unable to meet as the residual apartments are gradually sold. Our funding will offer certainty and flexibility.”
Harrison added, “Wingate has seen an increase in these types of opportunities due to the broader environment: an increased trend toward apartment living, factors relating to COVID-19, and now a broader pick-up in construction activity and demand, largely funded through investment houses like Wingate.”
The Program will provide compelling cost of capital for property developers, as well as well-insulated returns for both investment houses.
The program builds on Wingate’s track record of almost 20 years in providing non-bank property finance. Wingate’s high-net-wealth investor base is now over 2,000 individuals and a significant pool of funds under management.
“Wingate is delighted to engage with Goldman Sachs on this opportunity,” said Harrison. “We see a strong alignment between the two organisations in our client and co-investor focus, and our risk-led approach.”