Equity Secured Capital
DEVELOPMENT CAPITAL WITH AN UNDERWRITTEN EXIT STRATEGY
Equity Secured Capital provides property owners and developers with structured capital solutions designed to address both funding requirements and development exit risk.
DEVELOPMENT RISK DOESN’T END WHEN THE PROJECT IS FUNDED
Property developers face multiple risks throughout the development cycle — including construction costs, market conditions, sales performance, refinancing conditions and the value of the completed asset.
“EQS is designed to address one of the most significant of these risks: the exit”
By incorporating an underwritten and insured exit strategy into the capital structure, EQS can provide greater certainty around the project’s ultimate exit value and strengthen the overall funding structure.
WHAT IS EQUITY SECURED CAPITAL?
EQS structures equity and debt funding solutions for qualifying property developments, incorporating an underwritten and insured exit strategy designed to protect capital and provide greater certainty around the project’s eventual exit.
The structure can be applied across residential, commercial, industrial and mixed-use developments and is designed to work alongside the developer’s existing equity and project funding requirements.
THE LIVN PUT OPTION – A STRUCTURED EXIT STRATEGY
PROPERTY DEVELOPMENT | EQS CAPITAL STRUCTURE | LIVN PUT OPTION | UNDERWRITTEN EXIT | DEFINED CONTRACTUAL EXIT
For qualifying projects, the EQS structure can incorporate the LIVN Put Option Contract, providing an agreed mechanism for the holder of the option to require the purchase of the underlying property at the predetermined option price, subject to the terms of the relevant transaction documents.
WHAT DOES THIS MEAN FOR THE DEVELOPER?
FUNDING: Potentially strengthens the overall capital structure and supports funding discussions.
EXIT CERTAINTY: Provides a defined contractual exit mechanism for qualifying transactions.
RISK MANAGEMENT: Helps address exposure to changes in property market conditions.
EQUITY RISK MANAGEMENT: Designed to provide greater protection around the developer’s invested equity.
WHAT EQS DOES — AND DOESN’T — DO
EQS is designed to address:
- Market risk
- Exit risk
- Property value risk
- Funding structure risk
EQS does not remove:
- Construction risk
- Development approval risk
- Developer performance risk
- Project execution risk
ELIGIBLE PROJECTS – PROPERTY DEVELOPMENT SECTORS
RESIDENTIAL: Development projects from acquisition through completion and exit.
COMMERCIAL: Commercial development opportunities supported by appropriate underlying fundamentals.
INDUSTRIAL: Industrial development projects requiring structured capital solutions.
MIXED USE: Complex development projects requiring sophisticated capital structures.
HAVE A DEVELOPMENT PROJECT?
Let’s assess the opportunity: Whether you require development equity, debt, refinancing or a more sophisticated capital structure incorporating an underwritten exit, Bottom Line Capital can assess your project and determine whether EQS may be appropriate.
MAKE AN ENQUIRY