providing Borrowers with funding to complete their projects or finance their business whilst offering investors well structureD, secured and strong risk adjusted returns
For borrowers, M.H. Carnegie prides itself on being able to provide flexible, creative solutions to deliver the funding required to bring their projects to fruition or finance their business.
For investors, M.H. Carnegie has a team with many years' finance experience, with an aim to provide well structured transactions with strong risk adjusted returns in a low interest rate environment.
To date, the M.H. Carnegie debt team has invested over $180m into secured first mortgage primary debt transactions, returning a realised and unrealised IRR of 15.4%.
The team structures transactions on a bespoke basis enabling funding solutions that are free from the product and policy constraints typical of traditional mainstream debt providers.
With a dislocation in credit markets following a withdrawal of bank funding to Australian real estate development, M.H. Carnegie saw an opportunity to enter the market. Targeting loans with the following characteristics:
- Interest rate of 10-15%p.a.
- Secured by first or second mortgages
- Investment size of $20m-$100m
- Loan to value ratio typically less than 70%
- Loan to development cost typically less than 80%
M.H. Carnegie is partnered with Christian McKelvey, who sits on the credit committee and brings a wealth of expertise in property funding. Christian is the Founder of Heritage Property and has 20+ years experience in structured property finance and property advisory. Christian was previously Group Head of Property at Pepper Property advisory and Divisional Director of Grant Samuel’s property business.
Gunnamatta Bay, Cronulla
|Date of Investment||June 2017|
|Deal Summary||The developer owns a 2,100sqm parcel of waterfront land holding DA for the development of a mixed use property (28 luxury residential apartments and two commercial suites), with pre-sales representing 65% of total debt principal. The borrower required finance for construction given failure to satisfy major bank lending policies. A $44.25m senior secured facility was provided to refinance existing debt, fund construction works and seed a debt reserve account.|
|1. Capacity to complete - Provided sufficient funds to enable completion of an improved DA at a time when a request to the previous financier failed to meet their new pre-sales requirements
2. Seemless transition - Worked with the previous financier to ensure a seamless refinance and a fully funded project to ensure delivery of the project
3. Collaboration - M.H. Carnegie has managed a wide variety of stakeholders to bring the transaction to fruition, provided unquantifiable 'value add' to the developer