Hamilton Hill, WA — Stretch Senior (Class B) raise: $1,653,491

CrowdProperty has agreed to a development loan for 13 two-storey townhouses in Hamilton Hill, WA. The total loan facility is $12,401,184, with a Stretch Senior (Class B) raise of $1,653,491 targeted at wholesale investors seeking a higher income return within a first mortgage security structure. The indicative loan term is up to 18 months.

The Class B tranche targets a 14% p.a.* income return, reflecting its position in the capital stack: behind the institutional Class A tranche subscribed to by Avari Capital Partners, and ahead of developer equity, within the same registered first mortgage facility. The Class A tranche carries a target return of 9.75% p.a.*

The project involves the construction of a townhouse development comprising 13 two-storey dwellings on a 1,012 sqm site in Hamilton Hill, within the tightly held coastal corridor of the City of Cockburn, approximately 16 kilometres south-west of the Perth CBD and 5 kilometres from Fremantle.

$12.4m Total Loan Facility
~$1.6m Stretch Senior (Class B) target income return at 14% pa*
Indicative loan term up to 18 months
Within a first mortgage secured structure

Capital structure

Class B sits directly behind the institutional Class A tranche within the same registered first mortgage structure. This is not a second mortgage or mezzanine position. CrowdProperty acts as investment manager and trustee, holding the registered first mortgage over the project site. The security package also includes a General Security Agreement over the borrowing entity and personal guarantees from relevant directors.

Avari Capital Partners — based in Sydney and managing over $2 billion in property-related assets — has committed to 100% of the Class A interests. The institutional participation underpins the credit quality of the broader facility and provides alignment throughout the project lifecycle.

The return premium available to Class B investors reflects the subordinated position behind Class A in the repayment waterfall. Both tranches benefit from the same first mortgage security and the same construction and credit oversight from CrowdProperty’s team.

The project

The development is located in Hamilton Hill, a coastal suburb within the City of Cockburn. The precinct is well positioned within Perth’s southern coastal corridor, supported by proximity to Fremantle, the Indian Ocean coastline, and the employment base generated by AUKUS-driven shipyard expansion in the region.

The developer has secured two pre-sales and is actively marketing the remaining townhouses, with a target of achieving up to seven pre-sales — a level that would provide 100% debt cover. A construction timetable of 18 months from drawdown is in place, with an indicative completion date of January 2028.

Exit strategy

The primary exit strategy is the sale of the completed townhouses, supported by active pre-sales and an ongoing marketing campaign. The secondary exit is refinance and hold. The developer’s balance sheet and the institutional involvement of Avari Capital Partners support the availability of alternative exit options if required.

The borrower and project team

The developer is South Beach Farm Pty Ltd, led by Todd Nerer. The project team brings direct experience in residential development across Western Australia, with a focus on high-quality infill product in established coastal locations.

The borrower’s credit tier, prior development track record, and balance sheet have been assessed by CrowdProperty’s credit team as part of the standard appraisal and investment committee process. Personal guarantees have been provided by relevant directors, consistent with CrowdProperty’s lending requirements.