Products
There are a number of different types of capital products currently available in the market and they can be generically categorised and described as follows. However, the market is dynamic and therefore we specialise in identifying, structuring and arranging the optimum product or blend of products required for your investment or development project.
Graphics are indicative only and actual ratio’s will be dependent upon individual transaction characteristics
Senior debt
- First ranking debt
- Secured by first ranking registered mortgage
- Low to moderate risk
- Development and investment purposes
- Typically provided by banks and larger institutional investors
- Returns comprise of establishment fees, lines fees and coupon/margin
Stretch Senior Debt
- First ranking debt with extended (stretched) leverage
- Secured by first ranking registered mortgage
- Moderate to high risk
- Generally used for development or repositioning purposes
- Typically provided by specialist real estate focussed funds
- Returns generally comprise of establishment fees, line fees and coupon/margin
- In some circumstances there can be exit fees or nominal profit sharing
Mezzanine Debt
- Second ranking debt, sometimes referred to as second mortgage or junior debt
- Secured by second ranking registered mortgage
- Moderate to high risk
- Almost always used for development purposes
- Typically provided by specialist real estate focussed funds
- Returns generally comprise of establishment fees and coupon/margin
- In some circumstances there can be exit fees or nominal profit sharing
Preferred Equity
- Similar leverage and risk characteristics to Mezzanine Debt
- No registered mortgage security
- Security generally comprises of shares or units in the landowner entity
- Moderate to high risk
- Almost always used for development purposes
- Typically provided by specialist real estate focussed funds
- Returns generally comprise of establishment fees and coupon/margin
- In some circumstances there can be exit fees or nominal profit sharing
Joint Venture Equity
- Sometimes referred to as ordinary equity or shoulder to shoulder equity
- No registered mortgage security
- Security comprises of direct shares or units in the landowner entity
- Full risk sharing position with developer
- Generally used for development or re-positioning purposes
- Typically provided by specialist real estate focussed funds
- Returns comprise of a share of profit
Senior debt
- First ranking debt
- Secured by first ranking registered mortgage
- Low to moderate risk
- Development and investment purposes
- Typically provided by banks and larger institutional investors
- Returns comprise of establishment fees, lines fees and coupon/margin
Stretch Senior Debt
- First ranking debt with extended (stretched) leverage
- Secured by first ranking registered mortgage
- Moderate to high risk
- Generally used for development or repositioning purposes
- Typically provided by specialist real estate focussed funds
- Returns generally comprise of establishment fees, line fees and coupon/margin
- In some circumstances there can be exit fees or nominal profit sharing
Mezzanine Debt
- Second ranking debt, sometimes referred to as second mortgage or junior debt
- Secured by second ranking registered mortgage
- Moderate to high risk (particularly in a recovery scenario)
- Almost always used for development purposes
- Typically provided by specialist real estate focussed funds
- Returns generally comprise of establishment fees and coupon/margin
- In some circumstances there can be exit fees or nominal profit sharing
Preferred Equity
- Similar leverage and risk characteristics to Mezzanine Debt
- No registered mortgage security
- Security generally comprises of shares or units in the landowner entity
- Moderate to high risk (particularly in a recovery scenario)
- Almost always used for development purposes
- Typically provided by specialist real estate focussed funds
- Returns generally comprise of establishment fees and coupon/margin
- In some circumstances there can be exit fees or nominal profit sharing
Joint Venture Equity
- Sometimes referred to as ordinary equity or shoulder to shoulder equity
- No registered mortgage security
- Security comprises of direct shares or units in the landowner entity
- Full risk sharing position with developer
- Generally used for development or repositioning purposes
- Typically provided by specialist real estate focussed funds
- Returns comprise of a share of profit
Partners
We have established relationships with a large and growing pool of capital partners, including major and non-major banks together with an expanding suite of non-bank and alternative capital providers.
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Argyle Capital Advisors Pty Limited