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.