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Mezz is back…tell your friends!

Mezzanine finance is back, for real. We’ve recently closed two mezzanine loans and have seen an uptick in inquiries for this capital type, which for the last few years has remained dormant.

This is an interesting shift in market and perhaps an indicator of where we expect to see activity in real estate debt capital through 2021.

A few quick points/take away to make here:

• The combination of trading bank senior and junior debt in a development finance stack remains materially more price competitive than non-bank senior only alternatives. Our modelling indicates the savings are around 15%-20% of your borrowing costs. We closed a $20m capital stack recently using bank and mezzanine, which proved $250,000 cheaper than the alternative non-bank senior only solution.
• A resurging residential market should drive pre-sales and consequently developers back to considering the banking market for debt.
• We […]
  

To our Investors,

It’s been an extraordinary couple of weeks for us, as I am sure it has been for you. We sincerely hope that you are well and are managing the fall-out from Covid-19.

The Stamford team has been operating remotely since Monday 16th March. We made this decision to protect our people and ensure that they are healthy and safe. All our systems are cloud-based and secure so the transition to a remote-based workplace has been smooth and we remain fully operational.  I must say I do miss being in the office, but these are the times we are in.

We are holding daily video and conference calls with the team. This helps maintain our culture, exchange of ideas and ensures our ability to service our clients. We have also reviewed our disaster recovery program, our operating platform and financial capacity. Stamford is well capitalised […]