Funding

PortNordica is an experienced provider of funding solutions to property developers. We differentiate ourselves from our competitors through our ability to structure funding solutions that enable developers to achieve their objectives at various stages of their project lifespan. We believe it takes a collaborative approach with developers to ensure mutually beneficial outcomes and prides itself on its ability to structure and fund swiftly, ensuring timelines remain on track.

1st mortgage

PortNordica provides the following types of 1st Mortgage Funding:

Residual Stock loans, typically up to a 65% LVR on competitive terms. PortNordica provides greater flexibility regarding interest cover requirements, normally stringently sought by Banks.
Also note, as the main capital provider of Dorado Property (historically), PortNordica hold a significant Residual Stock loan portfolio. PortNordica now writes loans in their own capacity and welcome developers to approach us directly.
Funding on land sub-divisions, with or without appropriate pre-sales levels. These loans are categorised as construction finance facilities and the LVR level provided depends on the level of pre-sales in land and location.
Funding on Industrial, Commercial and/or Retail assets on competitive terms.

mezzanine & 2nd mortgage funding

PortNordica provides the following types of 2nd Mortgage and Mezzanine Funding:

Bridging Loans to assist Developers to relinquish Equity from their existing projects, this type of funding typically is used to allow Developers to secure their next project. These loans are provided when the project is 40-70% complete and reduce the cost of their 1st ranking loan yet allow the Developers flexibility to maximise their expertise within their financial capacity.
PortNordica provides traditional Mezzanine finance on developments in situations where there is a shortfall in developer’s equity for the 1st Mortgage holder to provide construction finance. PortNordica will consider projects with or without pre-sales.

equity/preferred equity

PortNordica will consider the provision of capital as a true equity partner, and/or provide a Preferred Equity position, in sound projects where we understand the risk reward profile offered by the investment. Some of the best investments made by PortNordica sit in this category. We welcome parties with sound investment proposals with a funding shortfall to contact us.

funding

1st mortgage

PortNordica provides the following types of 1st Mortgage Funding:

first mortgage case no.2

An experienced land developer owned a development project, which since 2007 had an approval for a 23 land lot subdivision.

first mortgage case no.3

A joint venture group had equally provided funding to acquire a site for the development of 12 two-bedroom apartments.

first mortgage case no.4

A developer had completed the construction of 195 apartments. Prior to this approximately 150 apartments were pre-sold leaving the remaining 45 apartments unsold.

mezzanine & 2nd mortgage funding

PortNordica provides the following types of 2nd Mortgage and Mezzanine Funding:

mezzanine debt case no.5

A commercial developer had secured a site on the fringe of an established suburb.

mezzanine debt case no.6

A developer in a very active market was two-thirds through the construction of a 72 apartment and two commercial unit project.

equity/preferred equity

equity case no.9

An established developer builder held a contract to purchase three development projects with a combined yield of 196 land lots.

equity case no.10

A newly established buy-and-hold syndicator purchased two large commercial buildings in its first year of operation.