Monark creates innovative, individualised funding strategies with speed and certainty, operating one of the largest private balance sheets in Australia.
Genuine in our desire to see quality developments brought to market, we offer access to a deep pool of capital and play an active, ongoing role in each project we finance.
Our flexibility, responsiveness and financial capacity ensure you can be agile in the market and proceed with total confidence at every stage of your project.
From crafting tailored funding solutions, to providing specialist capabilities across a range of related disciplines, Monark collaborates and contributes wherever possible to help our partners realise their vision.
Expert in origination, structuring and risk assessment, our approach continues to generate exceptional results and foster lasting relationships.
Number of transactions
Focused on middle-market residential projects along the eastern seaboard, Monark is today one of Australia’s premier property financiers.
Monark’s development focus:
We create tailored funding solutions that ensure you can be agile in the market and proceed with total confidence at every stage of your project.
Senior debt is secured by a first mortgage and ranks in priority to equity and any subordinated lender. This priority position reduces risk for the senior lender and pricing of senior debt reflects this level of risk. Monark provides senior debt for both land acquisition and construction either stand-alone or together with mezzanine debt and/or preferred equity. Having a single source of capital removes a significant amount of uncertainty and complexity from the transaction.
Senior Debt Projects
Unitranche or stretch senior debt is a combination of senior and subordinated debt in one package which is charged at a blended rate and provides a higher LVR than straight senior debt. It can be advantageous as it provides a comprehensive funding solution and streamlines the credit and documentation process. A unitranche facility can also prove more cost effective than separate senior and subordinated facilities.
Mezzanine debt is typically secured by a second-ranking mortgage and is subordinated to the senior debt lender, effectively sitting between developer’s equity and senior debt. Pricing of mezzanine debt will reflect this higher risk profile relative to senior debt.
The use of mezzanine debt allows a developer to effectively increase the Loan to Value Ratio (LVR) above a level that would be available from a senior lender. For this reason mezzanine debt enables a developer to more efficiently leverage its equity in a project, freeing up capital to be available for use elsewhere
Mezzanine Debt Projects
Preferred Equity ranks in priority behind Mezzanine and Senior debt. Preferred equity holders have a preferred right to payments over regular equity holders and can be structured in a myriad of ways. . Typically, it is used to fill a gap in a project’s funding, or to provide additional leverage. Preferred equity can be a more flexible option for developers as it typically doesn’t involve taking security over the land-owning entity or taking a registered mortgage over the land.
Preferred Equity Projects
Projected end value
Wyndham Harbour is a vibrant precinct that incorporates a 1,000 berth marina, 1,000sqm of retail space and multiple housing typologies.