CapStra was mandated to raise $7.0m in mezzanine debt and assist in closing out a $61m senior debt construction facility associated with the development of 143 residential apartments and ancillary retail, located ca. 4km south of the Sydney CBD.
CapStra undertook a mezzanine debt placement targeting domestic and international mezzanine providers. By targeting specific groups, CapStra was able to achieve a competitive terms for the Client by leveraging the risk mitigants in place, including planning approvals, pre-sales, senior debt funding and construction delivery.
CapStra also advised on the senior debt facility requirements of the project, facilitating the procurement and execution of a facility from a preferred financier.
Identified a preferred counterparty for the mezzanine debt participation and negotiated the terms of finance. Advised on and managed the documentation process – for both the senior debt and mezzanine debt facilities, including satisfaction of conditions precedent to funding.
The mezzanine debt facility provided a repatriation of funds to the Borrower at a competitive cost of capital, and substantially improved the ROE and equity IRR for the Borrower.
CapStra was contracted by Quest Serviced Apartments Group (Quest) to obtain an upfront agreement on key terms for the sale of the founders controlling interest to a previously minority shareholder including pricing, timing and appropriate mechanisms to safeguard the founders’ residual minority interests.
