Private credit – Flagstaff Hill

Flagstaff Hill is a residential development on the city fringe in West Melbourne. The project comprises 169 apartments over 25 levels with carparks, storage and some commercial space.

Qualitas has been involved with this project since the beginning, when a construction mezzanine loan was provided to the developer and new client, United Asia Group (UAG). UAG is an experienced development group that have undertaken more than 50 residential projects over the past 28 years.

Following the completion of Flagstaff Hill, UAG sought a residual stock loan (RSL) against the ‘as is’ completed residential apartments while the apartment sales were finalised. Notwithstanding a competitive process, UAG selected Qualitas for the funding due to the positive experience they had with the earlier loan.

The facility, which was closed in May 2023, demonstrates the depth and breadth of Qualitas capital sources to support developers through the lifecycle of their development. We were able to provide a seamless transition for the developer from a construction loan to an RSL.

The current sales rate of the apartment security is tracking ahead of the underwritten sales rate – demonstrating high risk-adjusted return for our investors.