Funding Solutions
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Direct Funding
As a principal financier, our Direct Funding business offers a wide range of innovative capital solutions towards property assets and projects, focussed on main markets in Australia. Our solutions encompass the entire capital stack and are tailored to the unique needs of the transaction.
We offer Senior and Senior Stretch Debt, Subordinated Debt, Preferential Equity and Equity funding solutions. Having a single source of capital from us brings significant certainty to the transaction and borrower.
We offer Senior and Senior Stretch Debt, Subordinated Debt, Preferential Equity and Equity funding solutions. Having a single source of capital from us brings significant certainty to the transaction and borrower.
Our range of capital solutions includes:
A senior debt loan is secured by a first-ranking mortgage over the project and is repaid in priority to equity and any subordinated debt. We provide senior debt for both land acquisition and construction either stand-alone or together with mezzanine debt and/or preferred equity.
We also specialise in providing a “Unitranche” or senior stretch debt solution that is a combination of senior and subordinated debt in one package which is charged at a blended rate and provides a higher LVR than a traditional senior debt facility. By providing a single funding solution the credit and documentation process is streamlined.
We also specialise in providing a “Unitranche” or senior stretch debt solution that is a combination of senior and subordinated debt in one package which is charged at a blended rate and provides a higher LVR than a traditional senior debt facility. By providing a single funding solution the credit and documentation process is streamlined.
Secured by a second-ranking mortgage and is repaid following repayment of the senior debt. The use of mezzanine debt allows a developer to reduce the amount of equity for the project, freeing up capital for use elsewhere.
Preferential Equity is repaid after all secured debt has been repaid but before ordinary equity. Preferred Equity offers an alternative to raising additional equity and has the benefit of having a capped return. Preferred Equity can be a more flexible option for developers as it typically doesn’t involve taking security over the land-owning entity or taking a registered mortgage over the land.
We provide direct JV equity funding towards projects where we have a strong relationship with the Sponsor. Though our equity funding support, Sponsor’s are able to realise speed to market, reduced financial exposure, superior risk management and amplified Return on Equity.