The property market is an evolving beast and is driven by cycles.
As a result, a developer needs to stay ahead of the curve when it comes to accessing the appropriate funding lines for their project. Rapidly changing marketplace conditions can have a dramatic effect on lender requirements and in turn can have a significant impact on the underlying profit margins and returns for the developer.
Whether it’s a change in equity levels, leverage available, pre-sale conditions or general risk appetite, it makes commercial sense to engage with an originator who commands the wider market knowledge of senior debt, mezzanine funding and preference equity.
A lender will require comfort concerning perceived credit risks prior to issuing an approval for finance, these include (not limited to):
- Sponsor track record
- Sponsor delivery of similar size and scale
- Asset location and product type
- Supply pipeline and demand
- Sponsor equity contribution
- Feasibility and funding table
- Profit margin level
- Pre-sale Debt coverage level
- Project Specialists
Please contact us on email@example.com to discuss.