A unique funding model for the construction of a luxury residence, set to be one of Australia’s most sustainable builds, highlights the growing importance of private credit in delivering agility, commerciality, and flexibility in financing Australia’s future homes.

Leading boutique private credit investment manager, Zagga has partnered with award-winning celebrity landscape designer, Jamie Durie on his latest project, a luxury waterfront home located in Sydney’s highly sought-after Avalon Beach.

Along with five bedrooms, five bathrooms, multiple living rooms, a butler’s pantry, a full floor gym and wellness room with a sauna and steam room, Durie’s new home also includes an infinity pool, a self-contained nanny’s quarters with its own external access, and a boat shed, along with a pontoon and private beach.

Featured on Channel 7’s new series, Growing Home with Jamie Durie, the Avalon Beach home is also one of Australia’s first residential dwellings certified by independent sustainability ratings agency, Green Building Council of Australia.

Due for completion by end of month, the home has an estimated value in excess of $40 million, based on comparable sales in the area. As the senior lender on the project, Zagga expects to deliver investors returns comparable to its other investments, which average 9.80% per annum as at end October.

“This project is unlike any other in the market. We are thrilled to work with Jamie Durie, who is internationally renowned for his design acumen, to bring this sustainable-first design concept to life,” Tom Cranfield, director, Investment & Risk, at Zagga said.

“Jamie has designed the property as his dream home. It offers ultra-luxury comforts, ample green space, and state-of-the-art sustainability features, which highlight the possibilities of sustainable design in everyday living.

“As a non-bank-lender, we could deliver agility and flexibility in funding and consider risks and returns based on the build’s unique attributes and characteristics. Working hand-in-glove with Jamie’s team ensured the best outcome for Jamie, as our borrower, alongside market-leading returns for our investors,” Cranfield added.

Durie said Zagga’s specialist capabilities and dedicated team gave him the confidence to pursue his aspirations of building a healthier home for his family and the environment. “I have a young family, and it was incredibly important to me to build a house without compromise. This means a responsible, ethical build with best-in-class sustainability features that not only give my family the healthiest lifestyle, but also protect and preserve Australia’s spectacular natural environment.”

“Working with Zagga has accelerated the project. It’s a mammoth build, going from an asbestos shack to a state-of-the-art, sustainable home, but the team has been with me for every step of the journey, ensuring we get the best outcomes for all parties – on time and on budget.

“I met with at least nine traditional banks and non-bank lenders on this project and Zagga stood out because of its specialist capabilities and bespoke structuring of terms. For me, it has highlighted the importance of partnering with specialists who can really judge the project based on its individual merits rather than having to tick the boxes,” he added.

Sustainability at the heart of every design element

The sustainable build saved 178 tonnes of CO2, which is the equivalent of taking 39 cars off the road or planting 7000 trees.

The geothermal heating and cooling system allows the home to be run entirely off-grid without fossil-fuel energy. It also incorporates solar panels, rainwater tanks, and reduced carbon-concrete.

Interior features include carpeting made from recycled ocean plastics, VOC-free paint that can absorb carbon, and an 80 percent recycled kitchen with zero formaldehyde and carbon-free benchtops.

“Private and non-bank lenders will play a crucial role in bringing more sustainable builds to the market,” Cranfield said. “Strict lending criteria and increasing regulation mean traditional lenders, like banks, are finding it increasingly challenging to invest in unique, innovative projects like this one. This is providing private, non-bank lenders, like Zagga, access to A-grade opportunities, which historically have been the domain of the Big 4.”

“We expect this trend to continue as demand for sustainable living increases and the nation’s housing shortage puts more pressure on developers and the construction pipeline. Commerciality, flexibility, and the ability to work closely with borrowers will be our point-of-difference and competitive advantage,” Cranfield observed.

Durie’s unique design vision of a ‘growing home’ includes an 85-tonne rooftop garden, extensive vertical gardens, over 3000 native plant species, and more than 180 indoor plants.

“This home is the embodiment of years of research,” Durie said. “It has allowed me to showcase my creativity and passion for landscape design, while also working with global leaders in sustainability and green technology to bring next-generation, sustainable living to Australia’s shores. I am humbled to be showing others what’s possible in sustainable residential design, while knowing I am building a brighter, healthier future for my family.”

Branko Miletic

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