Commercial property funding has always been considered quite an exciting area of business, but for many the excitement of cutting a property deal has diminished as the sheer force of effort now required to secure funding. Commercial property development funding has taken a down turn for the first time since the middle of 2009. With many of the planned public sector property developments being shelved or deferred, it leaves the private property developer with a less than obliging bank manager. So many speculative property developers are looking for development funding from private investors, venture capitalists or other specialist lenders and deal brokers.
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Great article I wish it was longer. Private lending is the only way nowadays.
Comment by Eric — September 6, 2010 @ 3:19 am
Hello Eric,
Thank you for your comment, great to receive a positive comment. I am always happy to write on a requested subject. Which area of commercial property funding would you be most interested in hearing more about?
best regards Richard
Comment by Richard — September 8, 2010 @ 9:18 pm
Eric, would be great to have a chat with you about Private lending.
Very true. Other funding option are becoming the only viable option for people.
Richard, would be great to hear your thoughts on Mezzanine funding.
Comment by John — September 10, 2010 @ 10:09 am
Hello John, always great to receive comments so thank you for that. Mezzanine funding as I am sure you are aware is the top up funding on a structured deal that has bank or private lending as the primary funding element. My personal thoughts are as with most property backed lending it has lost favor with bankers and investors. However at the peak of the property market I did hear of mezz funders accepting interest levels of as low as 15% which given the risk is nothing short of incredible. As with many others it appears some were betting on a rising market for their returns rather than a sensible property development appraisal .
Comment by Richard — September 10, 2010 @ 9:35 pm