21 April, 2021

Mezz is back…

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 […]
28 March, 2020

SCIM Investor Update

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 […]

1 February, 2018

Investment Spotlight: What are we looking at in 2018?

Looking at investment opportunities for 2018, it’s going to be a year of debt, debt and more debt. Last quarter we saw residential prices fall in Sydney for the first time in years, and with commercial assets selling at all time low yields, we are of the view that asset prices have peaked over the short run. For this reason, we believe investing in debt is compelling. We also have some opportunistic equity deals we’re working on – all with well-known, quality sponsors that our team understands and have had relationships with over decades operating in niche markets.

At Stamford Capital Investments, the decision-making process behind any investment opportunity comes down to ticking off three key components:

– Trusted sponsors
– Quality of the asset
– Leverage.

And we place our heaviest weighting towards the quality of the sponsors we deal with. […]

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