One of Australia’s most exciting tourism projects - Cairns Aquarium - is now under construction thanks to $32 million in debt funding arranged by Gieldan Capital, a joint venture between FIIG and M.H. Carnegie & Co
Cairns will welcome the new $50 million Cairns Aquarium and Reef Research centre in early 2017.
This is partly due to a small number of family offices and high net worth investors who will lend $32 million to help fund the new attraction. As featured in the AFR last Thursday, this debt facility was successfully arranged by Gieldan Capital, a joint venture between FIIG and M.H. Carnegie & Co.
Now under construction in the heart of Cairns adjacent to Cairns Pier, the aquarium is a very positive development for the city as a major infrastructure project and tourism initiative.
As for the debt, the arrangement includes a part repayment from the proceeds of a Federal Government R&D tax rebate and is expected to produce a high return for investors (potential for 16 – 18 per cent annual return).
Gieldan Capital Head, Neil Sutton, said the agreement was a milestone which proved the business’ ability to structure sophisticated funding arrangements that met the needs of all parties.
“This solution shows that Gieldan can put together very complicated structures and unusual bespoke debt solutions that deliver the funding that borrowers require,” Mr Sutton said.
“We can provide investors with opportunities that they are unlikely to otherwise access and structure them in a way that the market can understand.”
M.H. Carnegie & Co principal Mark Carnegie said the transaction illustrated that significant funding solutions could be arranged outside of the normal banking routes.
“The transaction demonstrates that we are not limited by policy or product-driven funding solutions, unlike the major banks,” Mr Carnegie said.
“The Aquarium is an unusual and bespoke transaction and we can apply ourselves to harness a deal which works for everybody.”
The aquarium, as stated on its website, also doubles as a research centre dedicated to promoting environmental awareness and on-ground aquatic ecosystem research, as well as developing and supporting unique initiatives in areas such as seafood sustainability and conservation. It will boast: three storeys, around 45,000 Aquarius species, 69 live exhibits and is expected to attract over 500,000 tourists to the area.
For more information on Gieldan Capital visit the website.