Blending debt and equity in a tight market
Right now, I’m in the thick of a $10 million blended debt/equity raise. Debt alone is tough, but equity before resource consent is even more challenging.
It’s the kind of deal most people park in the too-hard basket.
The developer is already fully stretched. All available funds have been used, so there’s no extra capital if they need more.
Most would pause. Wait. Hope for consent first, then try again.
We’re handling it end-to-end:
- Debt lined up
- Equity lined up
- Consent strategy lined up
- Timeline tight
- Funding stack locked
This deal hit my desk from a Christchurch real estate agent I’ve known for 35 years. We’re based in different cities, but true trust holds strong, regardless of distance.
The development manager for this project, Leaning Rock Development, is the same client from the Bannockburn project.
Different land.
Different projects. One degree of separation.
New Zealand is like that.
The project’s accountant is an old Nelson College boy, same as me, just a few decades ahead. His nephew and I have been discussing Queenstown house & land funding.
This is what people don’t see.
Deals don’t get done because the numbers add up on paper. They get done because when you call, the other person picks up.
Here’s what I’ve learned in 20+ years:
- Raising equity pre-consent is tough
- Getting debt when the developer’s out of cash is worse
- Relationships make the difference
We know how to line up the parts.
The right plan. The right trust. A stack that holds, even without consent.
I’ll keep you updated on how this project progresses.
