Stamford Capital securing financing for DD Living's Royale Gold Coast apartment development
NEW GOLD COAST LUXURY RESIDENTIAL DEVELOPMENT DEFIES QUEENSLAND MARKET WOES
Australia’s leading independent arranger of commercial property finance, Stamford Capital, has secured financing for DD Living’s Royale Gold Coast luxury apartment development. This is one of the largest residential development finance packages transacted in Queensland this year. Despite unprecedented challenges in the construction industry with increasing numbers of projects mothballed across the Gold Coast strip, Royal Gold Coast reflects continued financier appetite for well packaged premium residential projects.
Stamford Capital secured innovative financing for the project through an off-shore hedge fund, able to underwrite the full $200 million plus development debt on a first-mortgage basis. This structure enabled an immediate construction start, whilst unlocking potential to restructure a large component of the debt once requirements for lower price major bank debt is achieved.
Importantly, this lower cost financing structure allows risk to be progressively mitigated at a time where large-scale developments are particularly scarce in the Gold Coast market.
The $400 million absolute beachfront development Royale Gold Coast represents a premium residential development undertaken by seasoned developer David Devine’s DD Living. Launched to the market in 2021, 60% of the apartments have since been pre-sold.
According to Stamford Capital’s Queensland Director, Chris Drummond, increasing construction costs and supply chain issues combined with labour shortages have all contributed to the state’s current market challenges.
“A spate of residential development projects on the Gold Coast have recently been withdrawn due to construction industry pain points of escalating materials costs, and significant supply chain disruption, making Royale Gold Coast a noteworthy achievement that highlights the current ‘flight to quality’ trend,” said Mr. Drummond.
“Financiers are definitely cautious of Gold Coast residential property; however, funding deals are still on the table with apartment sales transacting in quality projects. In this market, the projects that are proceeding will sell quite well, essentially attracting additional buyers from those projects that have been withdrawn,” said Mr. Drummond.
Royale Gold Coast is prominently located at 7-9 Northcliffe Terrace in Surfers Paradise, and comprises 104 luxury two-, three-, and four-bedroom apartments and penthouses with an average price of $3 million. Crowned by a lavish double-storey penthouse, the high-end development offers stunning residences that bring affluent living to the well sought-after beachfront strip of Northcliffe Terrace in Surfers Paradise.
Designed by architects DKO Architecture with Mim Design appointed for interior design, Royale is positioned on one of only a few legitimate north-facing sites, presenting uninterrupted and never to be built out vantage of enviable sweeping beach and coastal views. Luxury finishes and fixtures are inspired by the surrounding coastline with cultured materials including natural stone anchoring every aspect of the penthouses.
Hutchinson Builders has now commenced construction of the prestige development. Spanning over 38 levels, each residence offers a designer floor plan with sizes ranging from 129 to 815 square metres and many levels featuring only two and three apartments per floor.
Lavish resort-style amenities include two swimming pools and a wellness centre with a yoga terrace, gym, spa, sauna, and steam room. Club Royale, an exclusive residents’ club that takes up the entire Level 1, features a private executive lounge, bar, private dining room, secure wine cellar lockers, whiskey lockers, meeting rooms, a large outdoor terrace and Cucina Chef’s kitchen.
Royale is a signature development for DD Living CEO and Founder David Devine, who has over three decades worth of experience in the Australian property market.
“We are delighted to bring luxurious residences to the Gold Coast, having already sold 60% of apartments. With the industry in disarray from rising costs and construction challenges, Royale represents a major triumph defying the current hardships the Gold Coast market has faced,” said David Devine, Founder and CEO of DD Living.
“With limited opportunities to buy premium apartments with a northeast facing absolute beachfront location on the Gold Coast, Royale epitomises lavish living and meets demand for prestige apartment developments along the coastline,” said Mr. Devine.
Royale is currently under construction and is expected for completion in the fourth quarter of 2025.
