1st October 2019
Merricks Capital provided Turn-Key Construction Finance for the speculative landmark office tower.
- $300M end value office tower
- 24,720 sqm of office space
- Turn-Key Construction Finance provided the developer with greater certainty around the build and finance costs
Designed by Cox Architects, the 24,720 sqm tower is uniquely positioned on an island site, affording future occupiers abundant natural light and sweeping views.
Compared with projects of similar scale, 627 Chapel Street will deliver relatively smaller floor plates at approximately 1,220sqm. The floor area and side core offer greater flexibility, ensuring both larger and smaller businesses can curate a workplace that meets the ever-changing commercial landscape.
The developer, Goldfields Group, has collaborated with several visionaries including architect – Phillip Rowe, technologist – Bruce Duyshart, urbanist – Emma Telfer, and restauranteur – Jean Paul Prunetti. The result is a properly integrated series of spaces from street level, through to the expansive roof-top terrace.
In an industry first, Merricks Capital has established a hybrid Turn-Key product together with Icon Construction. The key principles are:
The Turn-Key provides increased certainty to the developer by removing standard liquidated damages for delay and cost overruns by the builder. This is replaced by a guarantee by the builder and it’s parent company, in this case Kajima.
The guarantee requires the builder to pay Merricks Capital a fixed daily sum for delays. For the borrower, the finance cost is fixed with the exception of approved extensions of time and variations.
If the builder completes the project early, it receives the balance of the fixed finance cost; in effect, an early completion bonus.
510 Church Street
Merricks Capital provided Turn-Key Construction Finance for the speculative landmark office tower. $300M end value office tower 24,720 sqm of office space Turn-Key Construction Finance provided the developer with greater…