Offshore excel in customizing complex transactions for development companies and commercial real estate owners; that require highly leveraged financing which cannot be readily provided by conventional financing sources.
Solution may bring together both senior debt and equity, as well as subordinated or mezzanine debt, all combined into one transaction. This mixture can bridge the gap often remaining in typical real estate financing.
Structured finance is also an excellent alternative for real estate acquisitions or new international construction where many conventional lenders will not venture.
When utilized effectively, structured finance can be one of the few alternative financing arrangements that allow sophisticated domestic and international borrowers to increase their financial power by lowering equity requirements and be ban-to-asset-value ratios. Each structured finance package is engineered to meet that transaction’s needs and the borrower’s capabilities.
Structured finance is most suitable for mid-to large scale financing tenants, generally in excess of $10 million. Structured finance may balance sheet of off balance sheet arrangements, depending on the borrowers record of accomplishment and financial strength, the use of funds and the risks associated with the financing.