Mortgage Fund
Client ran into a liquidity crunch during COVID. We were able to provide $11M at 11% on a fund assets collateral, getting them the operating cash to continue full operation.
Cash to help a mortgage fund weather a lack of liquidity
Collateral Type: Mortgage Fund
Amount: $11M
Term: 1 year, auto renewable
Geography: Canada
Real estate investment fund with approximately $130M of equity which focuses on construction and development mortgages.
The Fund invests in real-estate construction and development mortgages in Canada. As of Dec 31, 2019, the mortgage portfolio consisted of 50 discrete loans, 80% of which were first-priority, across 26 developers, 23 cities, a weighted-average yield of 9.9%, 92% current, across a range of residential categories.
Ran into a liquidity crunch during COVID; we provided an $11M bridge loan to them.
We are senior secured and the sole lender to the Fund
The loan has a covenant of a minimum net assets of $85M, representing a maximum LTV ratio of under 15%.