Deicorp to start work on $920m pipeline
Sydney-based developer Deicorp will soon start construction on more than 1,300 apartments across the Harbour City, after securing finance to start its four newest projects, collectively worth $920 million.
Deicorp announced this week it had secured finance from non-bank corporate lender Metrics Credit Partners to facilitate the works, with the projects located in Castle Hill, Petersham, Rockdale and Rouse Hill.
Managing director Fouad Deiri said Deicorp had decided to progress its pipeline despite the economic uncertainty wrought by COVID-19, which has led to many of its peers to place projects on hold or slow down works.
“Construction, and the jobs it creates, is a major driver of the economy. If we want to protect employment and rebuild our economy, we need projects like these,” Mr Deiri said.
“Our pipeline of work will see Deicorp supporting more than 3,000 jobs over the next 24 months and will deliver much-needed new housing for people across Sydney.”
At Castle Hill, Deicorp will deliver 272 apartments within 200 metres of the Showground Metro Station, while its Rouse Hill project, known as Proximity, will comprise 375 units across six buildings.
In Rockdale, Deicorp’s Alfarn will comprise 382 apartments across three towers, with 1,900 square metres of retail space to complement the dwellings.
At Petersham, the developer will build 357 apartments and a new Petersham RSL Club in a three-tower project.
Metrics managing partner Andrew Lockhart said the financier was pleased to be involved with all four projects.
“We value our business relationship with Deicorp and have an excellent understanding of the way they do business,” Mr Lockhart said.
“They will provide a good source of investment returns for our investors.”
The new projects take Deicorp’s project pipeline value to more than $2.5 billion, with the company having delivered more than 8,000 apartments since its inception in 1999.
Mr Lockhart said the finance deal with Deicorp was indicative of a wider trend in the Sydney property sector, with non-bank lenders increasingly providing finance for commercial and residential developers.
Since January, Metrics has completed around $900 million of transactions, with $400 million of those occurring at the height of the coronavirus pandemic.
“The corporate loan market remains open,” Mr Lockhart said.
“Loan transactions are being successfully closed and we continue to enjoy a strong pipeline of lending opportunities from quality borrowers.”