Princeton's decade-long evolution from commercial fund to luxury off the plan apartment developer
Over the past decade, Princeton Financial Services has been working quietly behind the scenes as a very successful, fully integrated fund management, lending and development business.
But in recent years, with a trophy penthouse in Eurangi Bondi Beach approaching completion, Princeton is establishing itself as a more recognised name in the new residential development market.
Established in 2012 by current directors George Gadallah and Craig Anderson, Princeton's journey began four years earlier, after the 2008 global financial crisis shook the world.
Gadallah, an executive at St George Bank at the time, had a lightbulb moment.
"The GFC eradicated the non-bank lending sector altogether," Gadallah recently told Urban.
"At the same time, capital was reduced by the banks, who now considered lending to the development sector as a risk, so they largely exited the sector. The big banks were focusing on buying regional banks, as Westpac did with St George, and the monopoly of the Big Four as we know it now started to form."
In 2012, Gadallah and Anderson launched a Commercial Real Estate Debt (CRED) fund, a segment with no competition. It was, in fact, one of the first CRED funds since the GFC.
"We took the learnings from what had come before and deployed them in a sustainable business model," Gadallah says.
Fast-forward eight years, and the market became crowded. Gadallah had worked through development cycles since the mid-1990s and identified an opportunity to pivot into residential development.
They acquired development sites across a wide range of Sydney metro suburbs, from Campbell Parade on the dress circle Bondi Beach to a warehouse in Balmain that will be one of the last warehouse conversions in the Balmain village.
Gadallah says every development Princeton delivers will be of a standard that is well above its peers in its respective market.
"We're taking the same level of finish from our $20 million Bondi Beach penthouse to areas that haven't had that level of quality before," Gadallah said.
"We engage some of the country's best architects and interior designers, creating bespoke buildings in areas they've never really designed anything in before. This is the unique offering we want to take to different suburbs across Sydney."
While understanding the drivers in the property industry, Princeton has been an early adopter of Resilience Latent Defects Insurance. This new policy protects buyers from structural defects on new apartment buildings for up to 10 years.
"We are committed to providing certainty to our purchasers by utilising the best-in-class products that provide peace of mind and warranties for any defects," Gadallah says.
Princeton's current portfolio includes the luxury Eurangi in Bondi Beach, The Llewellyn Series in Balmain, a unique collection of warehouse homes, Marque Rockdale, 58 apartments with LDI, and Sydney Park Terraces, a recently completed set of only eight bespoke terraces in St Peters.
Princeton is also due to launch two other projects to market in the second half of this year.
On Princeton's geographic spread of new development, Gadallah says they won't be tied to developing in one location.
“We focus on developing unique assets in high demand, high amenity locations. If a site and our unique lending metrics fit that criteria, we’ll look at it.”
