Melbourne-based developer Resimax Group has secured $350 million to undertake future stages of its massive Eynesbury estate in Victoria in the largest funding deal the company has negotiated for the project.
A consortium of global private credit investors, led by Nomura and Avenue Capital, have backed the project after six months of talks that involved the payout of two existing financiers.
The funding deal gives Resimax the financial clout to step up development of the master-planned community which is being undertaken on an 828ha site in Melbourne’s west.
Nomura was one of the early investors in the project, described by Resimax as Victoria’s largest mixed-use-zoned development which the company acquired in 2019.
The funding arrangement effectively buys out Brisbane-based property financier MaxCap Group and alternative asset manager Metrics who came on board for Resimax’s acquisition of Eynesbury from Hyde Property Group.
Eynesbury, located between Melton and Werribee in Melbourne’s booming western corridor, has already delivered 2,000 lots since the development was first announced in 2003.
The development, which is earmarked to include a town centre and future plans to incorporate luxury accommodation into the precinct, is home to a Graham Marsh-designed golf course and the historic bluestone Eynesbury Homestead which is part of the Eynesbury Quarter events precinct.
Resimax says the support of its financiers has helped the company deliver 650 lots since acquiring the project in 2019, despite the challenges of COVID lockdowns and higher development costs.
“We’re very thankful to our major funding partners Nomura, Avenue Capital and Allianz Global Investors, who have banded together to support the ongoing delivery of Eynesbury Township,” says Resimax managing director Ozzie Kheir.
“This deal underscores their confidence in Resimax’s capability as well as our largest residential project Eynesbury.
“The funding we have secured will allow us to continue to bring forward major infrastructure and services that will support Eynesbury’s existing population of more than 4,000 people, future residents and local business operators.
“I’m sincerely grateful to outgoing financier MaxCap Group and Metrics for their support over the past three years, which has underpinned the success of Eynesbury.”
Stephen Allan, Nomura’s Australian managing director responsible for loans and principal investments, says Nomura has built a ‘strong partnership’ with Resimax over the past three years, built on ‘successful projects and a track record of delivery’.
“We are thrilled our investors showed full confidence in Nomura by supporting this marquee funding package, demonstrating trust in us, the project and our delivery partner, the Resimax Group,” Allan says.
Eynesbury, which had been owned by the rich-lister Baillieu family for more than 70 years since it was acquired by John Baillieu in 1947, has faced multiple hurdles to development following a series of owners since 2003.
Among the early partners was Gold Coast developer Villa World which had planned to develop the original 1,200ha site in partnership with the Baillieu family.
However, Villa World sold its interest in the development for $60 million in 2014 to Hyde Property Group, backed by a Singaporean and Malaysian syndicate. The drawn-out sale process was hampered by the syndicate delaying the final payment to Villa World until 2015.
Resimax, which entered a joint venture partnership with Hyde Property Group in 2018 to pursue development of the project, took full control of Eynesbury a year later.
Resimax is currently undertaking a number of smaller-scale residential projects in its home market, including Mernda Rise and the Neo townhouse development at Newbridge, both in in Melbourne’s north.
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