Private developer Ricdanic understands that lucrative property deals are all about location, location, location and having a strong financial partner in your corner, especially during uncertain times.
Developer Ricdanic’s commercial office project in Collingwood 55 per cent leased.
In 2018, Ricdanic identified that Collingwood was fast becoming the boutique office precinct of choice for discerning small to medium-sized tech and digital businesses. And it was this thematic that drew them to acquire 1-9 Sackville Street, Collingwood.
After procuring a development approval for a 9-level commercial office building designed by Idle architects, Ricdanic was rejected by the major banks who were unwilling to finance the development unless it had secured precommitments for over 50% of the building. Knowing that time was of the essence and speed to market was critical, they canvassed the non-bank market and elected Monark Property Partners because of their “entrepreneurial, genuine and collaborative approach to doing business” said Dale Brouze Development and Project Manager of Ricdanic.
“They understood our vision from inception and provided a land and construction facility that met our commercial objectives,” said Dale Brouze.
Monark Property Partners facility enabled contractor Harris HDP to commence construction without the requirement of any tenant precommitment.
On the eve of Financial Close of construction commencement, Covid 19 had reared its head and Melbourne was ordered into the first of six lockdowns that would impact the development of Sackville Street.
The onset of the pandemic and initial lockdowns created havoc in financial markets and stripped the oxygen out of the commercial office market as people worked from home.
“Monark remained steadfast in their commitment to finance the project no matter how challenging the environment. We have no doubt that most financiers would have either withdrawn their funding offer or delayed construction commencement. In either of these situations our project may never have been built.” said Dale Brouze of Ricdanic.
Monark Property Partners co-founder and CIO Adam Slade-Jacobson says; “We are incredibly proud to be associated with 1-9 Sackville Street Collingwood. Monark supported this project from inception to completion, helping to create an intergenerational asset for our client. This is a great example of Monark’s capital working in partnership with a quality developer to transform a vision into a reality. The end product is now a home to some of the bigger tech companies in Australia as well as being a stunning addition to the commercial skyline of Collingwood.”
On completion of the building, Monark Property Partners provided an extended tenure to allow Colliers to promote the building and orchestrate an orderly leasing up program. By extending the term of the loan beyond the maturity date, enabled Ricdanic to negotiate with prospective tenants from a position of strength.
Colliers have acted on behalf of Ricdanic for the Leasing of 1-9 Sackville Street, Collingwood prior to construction commencement. Colliers indicated that the quality of the building and 1 percenters are what sets it apart from the competition and has seen it lease up well during challenging market conditions. The Property is now over 55% occupied with Linktree secured as the major tenant. Hailed as the next new unicorn, Linktree has leased over 1500 square meters, occupying the top three levels of the building.
“Tenants such as Linktree, Birddog and Epic, an international company that manages software for hospitals, were attracted to 1-9 Sackville because of its spacious rooftop terrace, superior end of trip facilities, outdoor balconies, wellness room and a panoramic views of the CBD and Dandenong Ranges” said Dale Brouze.
“The design and location of the building has appealed to a younger generation who have ample building amenities plus access to Smith Street which was voted by Timeout Readers as the coolest strip in the world” said Dale Brouze.
Dale Brouze concludes; “Sackville Street is all about working, living and playing in the same area. During Covid people stayed at home and they missed out on the social infrastructure of an office environment, now they want work to be similar to a home-style living as well as to be in close proximity to shopping, food and transport.”