Nova Mortgages caters to a wide range of commercial real estate lending including:
Acquisition Finance, Asset Refinancing, Debt Settlement Finance, Development Finance, Bridging Finance and Mezzanine Finance.
The funding sources range from the pillar banks to wide spectrum of non-bank lenders.
Typically we specialise in loans between €500,000 and €10,000,000.
Acquisition Finance
Nova Mortgages arranges acquisition finance for both residential and commercial property. In addition we can arrange lending to self-managed pension fund investors. Typically, for asset acquisition, clients have two main concerns: speed and maximising loan to value. Nova Mortgages will review the market options in light of the asset characteristics and client objectives to pursue the optimal funding solution.
Asset Refinancing
Often, after an asset has had value added (subsequent to rent stabilization, refurbishment, longer leases, stringer tenants, etc) asset refinancing options expand which allows Nova Mortgages to review the lending market and secure more favourable terms.
Development Finance
Nova Mortgages has a range of development finance options for all stages of property development projects. Typical deals range in the €500k to €10m spectrum. Depending on the proposal characteristics and security this may involve funding from pillar banks, non-bank lenders, mezzanine debt, or a combination as necessitated.
Bridging Finance
Nova Mortgages can facilitate commercial bridging finance for residential and commercial development projects. Typically these loans are a temporary funding facility for a specific short-term period intended to provide funding until an exit strategy, such as asset sale or refinancing can be instigated.
This type of finance is often used by property developers as it facilitates the purchase of a site or existing property in order to redevelop. Pillar banks typically won’t provide financing at this early stage (assets that don’t produce income) however once the development is completed, and income established, the loan can be refinanced at more attractive rates over a longer term. Bridging finance loans typically go up to a maximum of 24 months, and can, depending on the deal specifics, fund the full purchase of the site and development costs covered. Loan interest rolled-up can also be implemented subject to LTV.
Debt Settlement Finance
Nova Mortgages specialise in negotiating and financing the restructuring of debt positions including commercial and residential property buy-back from vulture and private equity funds.
Pillar banks can be slow to assess and provide approval for settlement finance, often having a lower LTV based on portfolio income. Our alternative refinancing options are faster (if time is a factor) and typically less restrictive with higher LTV’s available.
Mezzanine Finance
Nova Mortgages has a varied list of capital providers including mezzanine finance.
For property development, or occasionally settlement finance, mezzanine finance is often a useful tool to increase overall facility Loan to value. Developers regularly use mezzanine finance to secure supplementary capital for development projects where a pillar bank will only provide a percentage of the total funds required to complete the development.
Mezzanine loans are often secured by a subordinate loan to the first mortgage lenders and can convert to an equity interest in the case of default. Due to the increased risk involved for the mezzanine lender they attract a higher interest rate & fees.