YieldStack Major Financier to Sydney Growth Corridor

Demand for traditional house and land continues to remain steady in Sydney’s north-west, a priority growth corridor that has, over the past two decades, significantly transformed from its rural beginnings to a desirable, leafy urban hotspot now with the infrastructure and amenity to match. 

With an estimated resident population of 190,000 in the Hills Shire LGA, further growth in this region is expected due to the relative affordability and availability of land coupled with the resumption of immigration back to pre-Covid levels.  

Since its establishment in 2018, commercial real estate non-bank lender YieldStack Capital Partners has been extremely active in this Norwest growth corridor, having financed about $500 million of residential land subdivision and construction projects, which includes supporting positive rezoning outcomes. 

“YieldStack’s solid track record of land and civil works financing in the Sydney Norwest is due to our strong on-ground local knowledge of the market and our ability to understand both the fundamentals and risks of a greenfield development as we move through the market cycle,”  YieldStack investment director Toby Stapleton said. 

Most recently, YieldStack arranged a $230-million senior first-mortgage land and civil works construction facility for a 40ha masterplanned land subdivision project at the Norwest suburb of Riverstone, which will deliver 308 lots across two stages. 

The foreign-backed local developer of the project has more than 20 years’ experience in medium-high density and land subdivision residential projects in Sydney and abroad. 

The Riverstone project is an example of how YieldStack is able to provide an entire financing solution for a highly experienced and well-capitalised sponsor, supporting the project delivery from the initial englobo state through to DA approved and eventually activation of civil works. 

The facility was structured over a two-year term to support the activation of the first stage to construction and the land banking of the second stage, which will have the ability to convert to construction once planning approval and pre-sales hurdles have been achieved.  

The project is underpinned by more than 50 per cent of pre-sales on Stage One, comprising a mix of buyers who are first homeowners, retirees and young families, demonstrating the strong market acceptance.

Stage One is due to begin construction in the first quarter of 2023. 

YieldStack is confident of a planning approval for Stage Two of the Riverstone project given the strong Stage One pre-sales to date and generally gross undersupply of product in the area.

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