Senior debt is the first level of liability to a project which means it is paid out first, ahead of all other lenders. Typically this is the position that the banks will take.
Mezzanine debt or mezz debt is a form of hybrid capital which can be structured as either preferred equity or unsecured debt. It is generally referred to the layer of debt that sits between senior debt & equity.
If structured correctly the main advantage of Pref Equity vs Mezzanine Debt is that Pre Equity does not require a registered 2nd mortgage or a deed of subordinated of debt to be negotiated by senior lenders such as banks.
Pref Equity is a form of hybrid of debt and equity financing used to fill the gap between what the Bank will fund and what the borrower is able to contribute towards the Total Developments Costs (TDC) of a project.
Pref Equity financing can give the Pref Equity provider the rights to convert to an ownership and control position in the development company under certain circumstances. These may include the loan not being paid back in time and in full or there being a prolonged un-remedied event of default relative to any loan documentation including senior lender or the Pre Equity facility itself.
Finishing your project and need to unlock the profits to move onto the new project? We have access to lenders who specialise in this.
End-to-end service for capital structuring, detailed feasibility and cash flow analysis and interest rate strategic advice.
Higher geared finance solutions are sometimes needed for initial stages. We have access to private lenders and family offices.
Why not get your project started now? With our pre-sale underwriting guarantee you in place you can start construction immediately and decide to sell when the timing is right for you.
Imagine being able to secure your profit on your project before you start? That’s right, where else can you get that?
As banks continue tightening lending to foreign buyers, developers with exposure to settlement risk has increased dramatically since the beginning of 2016. Banks have adopting a cautious approach lowering their loan value ratios and adopting stringent documentation rules.
If you have foreign purchasers, we have access to alternative lender sources.
Are you a Foreign property developer looking for finance but the major banks wont lend you money? We have several lenders who specialise in this space.
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We have various lenders who specialise in refinancing existing stock to allow time for proper marketing and sell down of the remaining dwellings. These lenders can assist you in refinancing to long term debt to hold for income and capital growth. Gearing off completed assets for new site acquisition or project cost is available.
The Developer Finance Hub places developers and lenders together. Property developers get access to many lenders at once and get the best deal for their project. Lenders use the Developer Finance Hub to access property developers they don’t currently do business with. The Developer Finance Hub provides a sophisticated software platform to both parties to facilitate the best finance deal, quicker and more efficient than ever before.
Yes, provided the loan does not exceed the maximum LVR for the loan. For most senior debt facilities interest is capitalised. For private equity deals this can also be capitalised.
Each lender will have their own fee schedule. This is a discussion you will have with your lender directly.
Every bank lends money but not every loan is the same. Every lender has their own specific capital criteria and this is what makes development finance so tricky to compare. It is our business to match your requirements to the best lender.
We are always looking to expand the reach of our network and to bring on new lenders. We do have an approval process to verify your business and to make sure we only provide those lenders who benefit our clients. If you are a lender and wish to join the Developer Finance Hub lending panel please complete an enquiry form and one of our team will be in contact with you.