Preferred Equity & Joint Venture Equity Funding by Challis Capital

 

Preferred Equity & Hybrid Securities

We have extensive experience is structuring preferred equity and hybrid security solutions for SME’s, corporate borrowers and property professionals.

Our real estate team specializes in facilitating preferred equity solutions as part of a construction finance package to property developers where the proposed senior debt provider will not allow subordinated debt or second mortgage behind them.

Preferred equity can have the properties of both common shares and debt and is often referred to as a hybrid security.

Challis Capital has direct access to professional investors that are specifically looking for pref equity / hybrid security opportunities with short to medium terms and with appropriate risk mitigants in place.

Contact us to discuss how our innovative property finance professionals can improve your business proposition.

Innovative Preferred Equity Solutions for Property Developers and SME’s

Property focussed Private Equity and Joint Venture Funding solutions

Challis Capital Partners has a proven track record, extensive property industry experience and market knowledge in Private Equity and Joint Venture solutions

Private Equity / Joint Venture is particularly useful in situations where the project proponent requires another party’s project development expertise and/or balance sheet position to progress the project to a mutually-profitable outcome.

Access to our unrivalled network

Private Equity or Joint Venture arrangements combine property experience, access to capital and opportunity.

Our experience is in facilitating Joint Venture funding that works for all parties involved – sharing risk with profits.

You have access to our wide-reaching network of high-net worth individuals, private companies and public listed and unlisted property trusts.

Most suited to:

 

·         Land owner looking to partner with an experienced property developer

·         Early stages of the project time line (such as rezoning or approval)

·         Developers looking for Development management experience, particularly for larger projects to demonstrate the ability to successfully complete the project

 

Create the right connections

If you need an equity or joint venture partner to successfully fund your development proposal, or if you are interested in participating and investing in private equity as a partner, please contact us for a confidential chat.

Effective Tips to Obtain Project Finance

 

Indeed raising funds is the key to successful and profitable business ventures. You will find that the aspect of funding is at the heart of every property project. There is an evident disparity of advantages offered for finance by direct cash investment and bank financing. It is possible to obtain maximum profit when bank financing is involved. Thus obtaining project finance is crucial to enjoying maximum profits.

In order to obtain project finance professional documentation is a prerequisite as it will have a direct impact on your reputation and it will increase the financial terms and rates that lenders are ready to offer you. It is a way to make your project more or less profitable. In order to arrive at the best position and structure so your project can achieve adequate bank financing and improve profitability, it is necessary to create a professional plan.

Now the question arises how can you obtain project financing? Since every business faces the hurdles of lack of project financing they need to find the right financing partner ready to give you the necessary project funding. The first and foremost requirement to obtain project finance is to present your project in a remarkable approach to your potential project investors and then to your clients subsequent to the implementation of your project.

Property finance plays an important role in project financing. In event of projects related to buildings, construction of a power plant, or creating an infrastructure for large and complex projects such as gas and electricity it is best to resort to property finance as there is sufficient risk involved. Project financing is a very efficient method however to tackle the risks involved beforehand it is necessary to hire the services of professionals in project financing.

When you will have to work rigorously to make your project successful as the money you lend for project finance is to be repaid with the cash flow of the project. Since your project will be financed by a number of investors, as well as loans from banks or other lenders it is important to take note of project financing and assets or collaterals related to the project.

There are a number of risks associated with property finance such as the unavoidable risk of factors like weather, politics, inflation, and cash flow. Moreover, the budget of the project is essentially required to be followed.

To discuss your specific project finance and structured finance needs you can hire the services of Challis Capital. They have a strong team to advise clients on complex, large-scale projects. At Challis Capital, you will enjoy a successful project financing outcome, to their holistic approach.

Top 5 Reasons Why You Should Invest in Commercial Property Finance

 

Investing in real estate is not a new idea. For centuries people invest in these assets to offer lifetime financial security. Thankfully today buying a property is not that big deal as we have Non-conforming Commercial Loans. The commercial industry is expanding for which property is required. If the location of the property is in high traffic areas it is the cherry on top. Well, there are several benefits of investing in real estate in 2022 like

1. Steady cash flow

There is no way we are going to see relief in terms of budget. A common man has to go through lots of challenges to give a good life to their family. As compared to other options like bonds, stocks, and shares real estate is a steady income. If you have invested in property no matter which type it is going to give you a steady income.

2. Get appreciation value

Historically it is known that commercial properties have great appreciation value as compared to any other investment options. It is also cost effective and proactive management that can offer lifelong security.

3. Considerable influence

Owning a commercial property is something that puts influence. Today there is no need to pay from your pocket instantly. There are loans and people have to pay down payments. This does not put a burden on the investors. When there is no stress of paying the full amount it benefits investors. This way leverage is enhanced and investors enjoy higher gains.

4. A secure investment

Commercial property has solid real estate value. No matter it is just land or commercial building it is a hard asset. If you have a commercial property in the right location it will give constant cash flow. If you are thinking about investing in commercial property then you are going for the safest investment.  Commercial properties are leased for long periods, which givefinancial security.

5. Substantial equity

Equity means what you have earned till now over a period of time from that commercial property. With commercial property, equity can be built quickly. There is steady cash flow and it also offers a high return. With time the value is also increased.

So investing in a commercial property has many benefits. It is also easy to buy any commercial property through Commercial Property Finance when you have limited or no funds to invest in.There are institutions offering people the freedom of secure investment. Challis Capital offers good real estate investment options and guidance. Here you are going to get the easy investment options from experts easily.

Elevate Your Business Through Commercial Loans

 

A business mortgage is a loan this is extended to companies by means of a economic institution. Commercial loans are generally used to buy long-term assets Long Term Assets Long time period property are property that a employer uses in its production manner and with a useful life of a couple of yr. Such belongings also are or to assist fund every day operational fees.

Understanding a Commercial Loan

It is unfeasible for small and mid-sized companies to get entry to equity and bond markets for financing due to regulatory hurdles Securities and  Exchange Commission (SEC)The US Securities and Exchange Commission, or SEC, is an unbiased corporation of the United States federal authorities this is responsible for implementing federal securities laws and offering securities rules. It is also in price of keeping the securities industry and stock and alternatives exchanges, associated costs, and the time required to steady the price range of Commercial Loans. Therefore, small and mid-sized firms use debt products along with industrial loans and/or traces of credit.

Commercial loans can in the end be used for any functions required for the enterprise – obtaining belongings, purchasing supplies, meeting each day operational expenses, paying payroll, and many others. In the mortgage application manner, the enterprise have to specify what the industrial mortgage might be used for.

Process for Securing a Commercial Loan

Depending at the lender, the technique to secure a business loan can be one of a kind. The popular procedure for securing any such mortgage is as follows:

1. Pre-approval (Qualifying process)

The lender (financial institution) will start a pre-approval procedure for the enterprise by using comparing the monetary records and income of the enterprise. In addition, the lender will check out the present debt of the enterprise and the purpose of the loan. Through a pre-qualifying manner, the lender can gain a hard concept of how a lot the commercial enterprise could be able to borrow and the relative riskiness of the borrower.

2. Loan utility

After the pre-qualifying method, the commercial enterprise ought to whole and post a mortgage utility. In the utility, monetary statements or comparable documents courting lower back at the least 3 years are commonly required Commercial Loans . This is to help make certain that the business can pay off the loan.

3. Review of the loan application package deal

Once the software is submitted, a loan officer will evaluate these due diligence files. They will investigate things along with credit score history, to be had Collateral is an asset that is pledged as security to a lender through an person or a enterprise to guide a borrowing request. Learn more! Of the enterprise, the modern and projected profits of the enterprise, and so forth. A massive a part of the diligence system is the monetary analysis.

4. Loan underwriter/Loan committee

If the loan request is deemed suitable with the aid of the loan officer, a whole and formal credit score application is submitted to a credit adjudicator or mortgage committee. The adjudicator critiques all applicable data and decides whether to approve or decline the loan. The procedure can soak up to per week, and the business can be required to provide additional documentation for the duration of the review.

5. Term sheet

If accepted, the processor will gift the organization with a term sheet. A term sheet is a formal report that outlines the events involved, amount of financing, available collateral, expenses, use of the loan, and the hobby rate at the mortgage. After reviewing the time period sheet and signing a letter of rationale, charge can be required for third-celebration reports, e.g., appraisal reports.

6. Loan package and final files

Upon finishing 0.33-celebration reviews, the entire mortgage utility package is resubmitted to the loan underwriter for final approval. If authorized, the business is needed to sign finalized loan files. Generally, groups hire a closing agent (e.g., a licensed consultant, an lawyer, etc.) who handles all remaining documents and completes any closing office work.

For more information about Capital Raising visit: https://www.challiscapital.com.au/

 

Distressed Property Finance And Corporate Facility By Challis Capital Partners, Australia

 

Distressed Property Finance to keep things moving

Challis Capital Partners provides innovative and responsive funding solutions for property professionals who find themselves in difficult situations.

Identifying the problems and counteracting

When a property developer runs short of funds to complete a project it can be for many wide and varied reasons. Funding becomes critical at this point to keep it on track and not lose many millions of dollars.

Our highly experienced Property Finance team is well versed in Distressed Property Finance and can make a difference in keeping the project alive. Turning major challenges into even greater successes.

Some examples of areas that we can help:

• Incomplete property developments
• Replace funding lines
• Provide additional sources of funding

Analysis. Planning. Execution.

Challenges are nothing new in property development. Great rewards come with risk. Our team understands that completely and has the expertise and proven knowledge to understand every aspect of recovery.

Our direct access to capital partners combined with expertise in finance, legal and project management mean we can take care of both planning and its execution.

Creating the right structure together

In collaboration with the property developer, our Property Finance team carefully evaluates and analyses the project. Essential blockages are identified and solutions are formulated.

Once these are clear, our team re-looks at the entire financing structure using the range of financial instruments available to us.

Where to start?

The important thing is that it happens quickly. Our team is highly responsive and builds critical timelines into the solution.

Contact us to discuss your specific Distressed Property Finance requirements in confidence.

Corporate Facility

Corporate Finance Solutions for Property Professionals

A Challis Corporate Finance Solution is a corporate level, unsecured facility which is non-conflicting with existing property level facilities such as senior bank loans or mezzanine debt facilities.The unsecured line is specifically designed to fuel growth.

As a property developer / real estate professional, you can typically find your capital constrained as your equity is locked in existing projects. This can slow down, or even halt growth.

Keep moving forward

Challis Capital Partners offers Corporate Finance Solutions that can work to unlock trapped equity and future cash flows which can be monetized and drawn down in total or in tranches to fuel growth strategies.

If your current funding structures are hamstringing progress in your organization, this unsecured line can allow funding of growth-orientated acquisitions.

Typical Borrower Profile:

• Property Developers (both local and offshore) with multiple current projects with a significant pipeline
• Real Estate Investment Trusts (REIT’s)
• Real Estate related operating companies such as management companies and fund managers
• Multiple projects, assets, income-producing properties, and cash flows

Key Points:

• Unsecured (no property-level mortgage security)
• Growth Capital for expansion
• Minimum Facility $30M
• Term can be up to 5 years

Structured to work for you

The facility amount is not dependent on the value of the project securities, so there is no traditional Loan to Value Ratio constraints and no requirement of a mortgage on the project.

It can be used for land settlement, development, refinancing, or as a substitute for equity/mezzanine finance or for any general corporate growth or expansion purposes.

The beauty of this is that it leaves the way clear for existing / future senior debt providers.

Untapping future cash flows

The facility can be repaid from the potential unlocking of equity/cash flows from existing and future projects. These can be from assets located anywhere in Australia and offshore, especially in Asia, Europe, and the US.

The future cash flows can be used to secure the corporate facility and will be used to assess the creditworthiness of the borrowing entity.

Where to start

Talking to our highly experienced Corporate Finance team will help you to understand how we can make things possible.

Contact us to discuss your specific needs in confidence.

Project Finance & Asset Finance By Challis Capital Partners, Australia

 

A ‘Capital Partnership’ with ‘Value-Added’ Opportunities in it

Challis Capital Partners ('Challis Group') was formed to create a capital partnership between our investor clients, and property industry participants, looking for innovative financial solutions. Our mission is to provide both our clients and investors with unique, value-added opportunities.

If you are a mid-to-large tier private or public company, Challis Capital is the boutique, privately owned, and independent corporate advisory firm with the experience, dedication, and commitment you need to grow.

Partner with us and you will enjoy unparalleled access to capital, experience and expertise across multiple industries and financial services.

Our mission – your growth

Achieve your growth targets and we achieve our mission. We call on our comprehensive strategic advisory experience and grant extensive access to financial products and services, to help you successfully implement your financial solutions.

Unparalleled access

You will have unparalleled access to debt and equity capital markets, both locally and offshore, when you partner with Challis Capital. Unlock our networks of lenders and sophisticated investors including major banks, investment banks, private equity, hedge funds, family offices, offshore capital, and high net worth investors.

Your finance options were carefully considered

Your capital raising options will be carefully and impartially reviewed by our team, taking into consideration purely debt-based solutions, equity, hybrid, or a mixture developed to suit your specific needs and augment your business growth.

Our experience aiding your success

Our clients benefit from the depth of understanding as well as varied views and approaches to transactions, due to the substantial combined industry experience of Challis Capital’s team. Our collective experience spans an extensive range of solutions and a proven track record in delivering our clients the best outcomes for their project.

Project Finance

Teamwork.  Structure.  Innovation. Tailored Project Finance Solutions

Given our team’s strength in advising clients on complex, large-scale projects, Challis Capital is able to anticipate, and more importantly, to understand and constructively resolve issues that may arise during the course of a project. Work with us, and you can be sure that the exact needs of your project will be met as we draw on our comprehensive experience to develop new financing solutions tailored to suit you.

When our team works on a project, what they bring is an integrated and creative approach to the structuring of your project finance, drawn from our extensive experience in a wide range of financing techniques.

Your projects are complex, so we treat the development and financing of a project as an integrated discipline. As a client, you will utilize teams assembled for their expertise in debt and equity finance, construction, and operations, property, as well as the relevant regulatory framework for your project.

You will enjoy a successful project financing outcome, thanks to this holistic approach which enables us to identify and deal with material project risks in an effective manner.

Contact us today to discuss your specific project finance and structured finance needs.

Asset Finance

Industry-leading asset finance solutions for corporate looking to grow

The way to use Capital is to preserve it. Challis Capital has a deep understanding of financial markets and instruments that corporate rely on to make the big decisions they need to on financing growth, infrastructure, and expansion. No matter how complex your project is, our experienced teams will welcome the opportunity to develop your Asset Finance solutions.

We understand Asset Finance can be vital for a corporate business to grow successfully.

At Challis Capital, our mission is to fuel your business growth by developing, and delivering, industry-leading Asset Finance solutions.

We like complexity, we are at home with it – we welcome it.

We can also unlock assets hidden in your balance sheet with our sale & leaseback products.

How Asset Finance supports your business

• Enables you to preserve capital and generate income from your new assets while paying for them
• Provides flexible funding profiles, so you can match repayments to your cash flow cycles and streamline your finances
• Alleviates the risk and responsibility of ownership

Asset Finance is versatile- you can fund the purchase of a wide range of assets essential to your business and growth potential.

It’s prudent- you avoid paying cash outright for key growth assets. You can ease your cash flow through regular payments over an agreed period.

To discuss your asset finance needs, contact us today.

 

Agribusiness& Credit Enhancement By Challis Capital Partners, Australia

 

Agribusiness

Agribusiness is growing, so are the solutions we are developing to finance it.

Challis Capital is determined to deliver only the highest quality corporate advisory and funding solutions in every industry it enters to service. Agribusiness is growing, and with advisory services and funding requirements on the rise, Challis Capital is there to service them.

and customize the right financing solutions to meet them.

Personal service

Your solutions will be structured on a case-by-case basis – so you can count on a higher level of personal service than you will typically find elsewhere.

A solution for every Agribusiness

Whether you are a large individual producer or a highly diversified corporate enterprise, you will find a complete range of lending solutions on offer at Challis Capital.

Contact us today to discuss the financial needs of your Agribusiness.

Credit Enhancement

Credit Enhancement Strategies for Corporate Borrowers

At Challis Capital, we understand risk, we also understand the wide range of financial instruments we can use to mitigate it for a corporation. If you’re a corporate and wish to discuss how you can access higher LVR’s and more comfortable loan terms, talk to us – we can help.

Introducing credit enhancement strategies allows the corporate borrower access to a more efficient funding package by virtue of significant risk mitigants being introduced.

Our clients have benefited from our Credit Enhancement Strategies through:

• Higher loan to Value ratios
• Improved interest only periods
• Longer loan terms
• Improved amortisation profiles
• Improved risk pricing of the corporate debt

Approved collateral types, currently consist off

• Commercial Real Estate
• Pooled Small to Medium Enterprise trade accounts
• Equipment loan/lease receivables
• Capital assets

A working capital based funding solution

If you are a property developer, we can also facilitate a Credit Enhancement strategy to cover your pre-sale shortfalls.

For your growing middle market company, Credit Enhancement solutions can be used as a highly efficient, receivables-based working capital funding solution.

Improve your corporate debt risk profile and help your business grow – contact us for a confidential chat about Credit Enhancement strategies today.

 

Contact us

Contact us today if you are a fast-growing company or a sophisticated investor that would like to benefit from our extensive experience in venture capital.