Our new stretch senior debt platform - Elixir
Elixir is a stretch senior debt platform, which utilises services across the Pepper business to originate, manage and service large ticket (AUD100m+) 1st mortgage commercial real estate loans.
Elixir was initiated in March 2017 off the back of a decrease in appetite from traditional financers to provide senior debt loans to the Australian corporate real estate market.
Infinity by Crown, a flagship mixed use residential development located in Green Square, Sydney, was the first Elixir funding transaction, finalised in October 2017. Pepper coordinated a AUD280m stretch senior construction facility on behalf of a third party lender, matching the reputable lender with the Infinity project and will continue to manage and service the opportunity for the life of the loan.
The transaction provided the Borrower with an approved and documented funding solution for the project within a short timeframe. The funding solution was provided by a single lender, in the form of a 1st mortgage, uni-tranche facility, with equivalent leverage to what would have otherwise been achieved by collating a club of senior banks with a mezzanine debt provider. Provision of funding was achieved on a peak-debt basis – a structure usually unavailable through traditional senior debt providers. The Elixir product enabled the Borrower with a convenient, cost and equity-efficient funding solution for the delivery of the project.