Investments

Mortgage investments offer the investor/lender fixed interest returns with the returns based on risk/return specifics of the proposed loan.

Often investment options direct into Private Mortgages are overlooked as most investors and borrowers alike are unaware of such opportunities. GCC is in a unique position to acts as facilitator to Private Equity, High Net Worth Individuals, Sophisticated investors, Companies and Superannuation funds who are interested in investing directly in property based mortgages to Australian Borrowers.

Investment Overview

Global Capital Commercial offers the lender/invester a fixed rate return and the opportunity to individually select the mortgages in which you want to invest. You decide which mortgages suit you, based on information about the loan, its term and interest rate, the security property and the borrower. You receive the benefits and the rights that attach to the mortgage that you select. From an individual Investor’s perspective, the Investor is exposed to the specific selected mortgage.

Market Overview

Since the Global Financial Crisis the Australian commercial lending market has seen significant tightening of credit policy in terms of the Loan to Value Ratio (LVR) available to borrowers. For example in 2007 LVR’s of up to 85% of the value of commercial properties were available to top quality borrowers. Today the LVR available is generally between 50%-70%. This means that even top quality investment grade proposals may have a shortfall if forced to refinance today.

Development finance has also experienced a tightening of credit policy from the Banks.

The Opportunity

Our proposal is to cater for this gap in the market for both Second Mortgages behind institutional lenders facilities for investment grade properties and mezzanine finance for developers. In effect to achieve a high return for investors for bank quality transactions.

Through our extensive network we receive an average of over $350M worth of loan enquiries every month which means that we are in a position to source lending proposals that will suit the investment profile of any investor/lender based on their specific risk/return profile.

Target Market : Second Mortgages

Well located Investment Grade properties where the borrower can clearly demonstrate serviceability via 2 years financials, leases, etc
Senior debt provider to be ideally an institutional lender such as a bank or super fund
Serviceability must be a minimum of 1.5 times interest which includes interest payment for both the senior and mezzanine debt
Target LVR is 75%
Up to 80% LVR will be considered if the borrower can demonstrate sufficient cash in flow to reduce the overall LVR to 75% within 12 months
Target Loan term will be 12 months
For specialised properties for valuation purposes we will only accept the Freehold value and not the leasehold/enterprise value (land & buildings alone)

Target Market : Mezzanine Finance

Well located property Development proposals
Developer to have sound development experience
An assessment of the financial position of all Guarantors
An assessment of the Financial Statements for the previous two years of the Borrower and Guarantors
An assessment of the 12-month forecast cash flow of the Group and their ability to service interest should this be necessary on completion of the Project
Copy of tax returns for the last two years for the Borrower and Guarantors or written evidence of a clear tax position from a suitably qualified accountant
Builder to have relevant experience in building similar developments
Senior debt provider to be ideally an institutional lender such as a bank or super fund
Appropriate risk mitigates such as presales to be acceptable and in place
Target LVR is 75% of GRV
Target Loan term will be 12 – 18 months

If you are interested in investing in mortgages contact us today.

Download the Investor/Lender Registration Form.