Canberra-based developer Geocon has announced a financing deal with international investment bank Goldman Sachs that is set to fast-track its $1 billion Republic precinct development.
The funding is set to reduce construction time from 10 years to 3 years.
Work on the first four towers in Canberra's largest-ever development will now run concurrently to deliver the project in record time.
The Fender Katsalidis-designed precinct includes the 14-storey "Republic", 18-storey "Dusk" and two 28-storey "High Society" buildings with the first 1,000 apartment, hotel, office space and restaurants built at the same time.
The 16,314sq m site is located on the corner of Cameron Avenue, Eastern Valley Way and Emu Bank in Belconnen.
The precinct was designed by Fender Katsalidis, the architects behind the Canberra's NewActon precinct.
The project will be fast-tracked and built in just over three years, instead of the planned 10.
High Society will include a rooftop sky park, wellness centre, indoor kids wonderland, resort style pool area and a car wash.
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The finance provided by Goldman Sachs – the terms of which were not disclosed – enables Geocon to slash the delivery time of Canberra's tallest building.
“Rather than a staged build as originally anticipated, we are taking the unprecedented step of delivering the first four buildings at once – almost 1,000 apartments of the 1,250 total,” Geocon managing director Nick Georgalis said.
The High Society tower will now be built along the same timeline as the two other residential buildings, with completion expected in 2021, rather than 2024.
“We will deliver more than half a billion dollars' worth of stock to help a rental market which has reached crisis point.”
Georgalis said that rental costs in Canberra coupled with low vacancy rates had forced Geocon to fast-track the project and release more stock to a struggling market.
“We are extremely excited to work with Goldman Sachs to deliver Republic as we continue to play our role in putting Canberra on the global map,” Georgalis said.
Geocon convinced the American investment bank to provide funding during a time when the major banks round Australia are shutting up shop.
“Our case for international investment demonstrated the potential of Canberra as a rapidly-growing market and Geocon's 100 per cent delivery record,” Georgalis told The Urban Developer.
Last year, Brisbane developer Kokoda Property secured $120 million in funding from Goldman Sachs, after Kokoda failed to obtain funds from the banks.