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Recorded: 3 August 2023
Overview
This virtual webinar provides essential development finance knowledge within a tight timeframe. Learn about bank vs. non-bank lenders, common pricing metrics, structuring options, choosing the right lenders, and explore case studies illustrating finance strategies for residential and non-residential projects.
Course Outline
Development Finance Fundamentals
Pros and cons of bank vs. non-bank lenders
- Categories of non-bank lenders
- Instances where non-banks are necessary
- Common pricing metrics and methods
- Selecting the right valuer
Understanding Funding Types
- Differentiating between senior, mezzanine, preferred, and equity financing
- Exploring structures and pricing mechanics
Alternative Structuring for Equity Contribution
- Leveraging other properties, residential houses, and businesses for equity
- Shorter-term mezzanine financing against ongoing projects
Choosing the Right Lenders
- Factors beyond price to consider when selecting lenders
- Importance of meeting transaction deadlines
- Working with industry professionals who understand and mitigate risks
Case Study: Boutique Residential Project
- Debt requirement of $5-20 million
- Comparison of non-bank and bank financing for this project type/size
- Cost analysis, feasibility outcomes, RoE metrics, and IRR considerations
Case Study: Larger Residential Project
- Debt requirement over $30 million
- Detailed analysis of a recent live project
- Comparison of equity requirements, net profit margin, and pre-sales hurdles for different financing options
Mark Trayner
Managing Director
STAC Capital
In property finance, Mark has experience across a wide range of asset classes, including Residential (from townhouses to high-density residential towers), Commercial, Industrial and specialised-use such as Childcare and Retirement Villages, through all layers of the capital stack, including senior and mezzanine debt, preferential equity and joint venture arrangements.
In business & corporate finance, he has a strong background in complex corporate structures, cash flow finance, asset finance, international trade, foreign exchange & interest rate hedging, production and analysis of complex financial structures and models, risk assessment and management, distressed asset management and strategic stakeholder management.
