Property loan
Property Development Funding
Development funding typically comprises of one (or a combination) of the following types of loan facility structures: Senior debt funding; Mezzanine debt finance; or Stretched senior debt.
There are over 610,000 SMSFs holding $876 billion in assets as at 30 June 2023.
Senior Debt Funding:
Broker.com.au collaborates with a wide range of senior debt financiers,
encompassing banks, institutional lenders, non-bank entities, and private investors. We have many years’ experience in arranging and organising favourable terms for senior debt financing for commercial investment property
development, as well as for residential, industrial, or mixed-use development endeavours.
Stretched Senior Debt:
Stretched senior debt offers enhanced flexibility in commercial property financing. Should you require greater leverage than what conventional lenders can provide, we are well-positioned to secure highly competitive financing options for stretched senior debt tailored to construction projects.
Mezzanine Debt Finance:
Mezzanine debt finance refers to a type of financing that sits between senior debt (secured debt) and equity in terms of risk and priority of repayment. Mezzanine debt providers offer funds to a property developer, with the debt being secured against the assets of the borrower.
The team at Broker.com.au have extensive expertise in this sector,
collaborating with capital partners to address sensitivities regarding
acquisition in comparison to valuation uplift or theoretical equity. Additionally, we can support with early equity release from a de-risked project and address short-term bridging needs.
Mezzanine debt finance provides an additional layer of capital for companies or projects that may not qualify for traditional senior debt or want to minimise dilution of ownership by issuing more equity.
