HK’s PAG backs Glenvill with major non-bank loan

DEVELOPER Glenvill has secured $300 million to fund its flagship infill development YarraBend, on the former Amcor paper mill site in Melbourne’s Alphington.

The deal represents one of the largest non-bank construction and development loans this year and is believed to have involved Hong Kong-based PAG. The senior debt facility is structured across several packages including development stages, infrastructure and other site-wide costs, allowing for multiple stages to be delivered concurrently.

Future stages of the project are also included, with release further stages across the next three years to meet market demand, with flexibility on the sequencing of works.

Local owner occupiers have accounted for most of the $470 million in sales at YarraBend since its launch in 2016. Over $100 million worth of townhouses and houses have been delivered this year.

Construction has recently commenced on the site’s first apartment building, Parkview Apartments, along with the first two stages of The Mills precinct, totalling $180 million in end value. Crema Constructions has been awarded the contract to build Parkview Apartments, while The Mills stages will be undertaken by Glenvill’s building arm, Glenvill Projects.

The first residents have moved into their homes and across the $100 million in townhouses and houses delivered so far, a 96.5% settlement rate has been achieved.

YarraBend will deliver a total of 1,500 dwellings, a 2,000 sqm retail and hospitality precinct, co-working hub, state-of-the-art health and wellness centre, gym with real and virtual training technology, indoor spa, 25-metre indoor pool, outdoor pool, sauna and steam room. Open or public space will account for 25% of the project.

Caydon is developing a $300 million apartment project on nearly 7,500 sqm of the former paper mill site, and Alpha Partner a mixed use precinct known as Village Alphington across 2.1 hectares, which is currently being shopped around with expectations of over $170 million.