DFP's Equity Injection Into Melbourne Firm to Drive $800m In Projects


Property advisory firm Development Finance Partners (DFP) has reportedly negotiated an equity injection for the Steller Group, based in Melbourne, which is set to deliver property development projects totalling $800m across the next 18 to 24 months. The quantum of the equity contribution was not disclosed.

DFP Principal Baxter Gamble said the equity-based funds injection was "probably unprecedented" in the current economic climate.

DFP's Baxter Gamble[/caption]“Steller wanted the flexibility to apply funds across its entire portfolio of existing and planned developments instead of the more usual arrangement where funds are secured against a specific project. We identified a single lender who could see the value in Steller’s operational strategy and its projects’ pipeline," he said.

Steller Group Managing Director Nicholas Smedley said the equity arrangement negotiated by DFP was a ‘breakthrough’ initiative at a time when traditional lenders had significantly tightened their lending criteria.

Steller director Nicholas Smedley[/caption]“The funds’ injection is of a quantum that clears the way for Steller to progress 14 projects with a completion value of about $800m. The lender is secured by way of equity in the dedicated 14 project pipeline – in effect, the lender has become a valued partner with us as we develop the business,” Mr Smedley said.
The pipeline is reported to cover 14 projects across varying stages of planning and pre-sales.


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