Robotic technology company FBR Limited (ASX:FBR) has secured construction financing for robotically built housing to support and grow the company’s construction operations using the Hadrian X® construction robot and the Fastbrick Wall System®.
FBR has signed an agreement with FC Securities Pty Ltd, a subsidiary of one of Australia’s largest alternative asset managers FC Capital, for a $2 million revolving debt facility to finance up to 67.5% of the land and construction cost of five homes FBR is building in Wellard, plus any subsequent FBR residential builds within the 30-month term of the facility.
The secured debt facility has an interest rate on drawn funds of 9% per annum, a 2.25% setup fee and a 3% line fee. Subject to satisfaction of customary conditions precedent, financial close of the facility is expected to occur this month.
The facility gives FC first ranking securities comprising a mortgage over the Wellard properties and FBR’s subsidiary Fastbrick Engineering Pty Ltd.
“We are pleased to have secured construction financing to assist us in delivering high quality robotically built structures here in Australia,” FBR managing director Mike Pivac said.
“The global rollout of the Hadrian X® will be underpinned by various forms of non-dilutive construction and machine financing, and the demonstration of support from an alternative asset manager shows market acceptance for FBR’s technology and methodology.”
FC Capital chief executive Christian Brehm added: “FC Capital is pleased to have worked with FBR to provide a non-dilutive capital solution to an innovative Australian company. We are hoping to grow our relationship in the future, for example to consider assisting the group with the deployment of further Hadrian X units.”