Question 1

What is bridging finance and when is it used in property deals?

Accepted Answer

Bridging finance is short-term funding used to “bridge” a gap — most commonly to complete a purchase quickly, fund a refurbishment, or cover a shortfall before longer-term finance or a sale completes.

Question 2

How does mezzanine finance work in real estate transactions?

Accepted Answer

Mezzanine finance sits between senior debt and equity in a property's capital structure, filling the gap when senior lenders won't fund the full amount required. It typically carries a higher interest rate than senior debt to reflect the increased risk, and is often structured with a mix of cash interest and an equity-like return, allowing developers and investors to reduce the equity they need to commit to a project.

Question 3

What types of CRE debt structures do you arrange across the capital stack?

Accepted Answer

We advise on and arrange financing across the entire capital stack, including: Senior Secured Debt — low-cost, long-term financing for stabilised assets; Bridge & Transition Loans — short-term funding (12–36 months) for heavy value-add, lease-up, or repositioning strategies; Mezzanine Debt & Preferred Equity — junior capital to fill funding gaps and minimise common equity dilution; and Development & Construction Debt — tranches released against project build milestones.

Question 4

Does JB Capital arrange both Debt and Equity capital?

Accepted Answer

Yes. We arrange both debt and equity solutions, tailored to the specific capital stack requirements of each development or investment.

Question 5

What are the current LTV and Debt Service Coverage Ratio (DSCR) benchmarks?

Accepted Answer

Underwriting parameters vary by asset class (Single Family Residential, Multifamily Residential, Logistics/Industrial, Retail, Office, Hospitality). LTV / LTC: senior loans typically range from 55% to 70% LTV for acquisition/refinance, extending up to 75–85% Loan-to-Cost (LTC) when combined with mezzanine capital. DSCR: lenders generally require a minimum DSCR of 1.20x to 1.35x on in-place net operating income (NOI) to absorb interest rate and tenant roll fluctuations.

Question 6

How do mezzanine debt and preferred equity co-exist with senior debt covenants?

Accepted Answer

When filling capital stack gaps, senior lenders require strict Intercreditor Agreements (ICAs) governing the rights of mezzanine debt or preferred equity providers. JB Capital structures these junior capital tranches to ensure compliance with senior lender standstill periods, cure rights, transfer restrictions, and total leverage caps (typically restricting combined LTV to 75%–85%).

Question 7

Can JB Capital help refinance an existing real estate debt facility on better terms?

Accepted Answer

Yes, refinancing existing debt facilities to improve terms, release equity, or extend maturity is a core part of JB Capital's real estate advisory service. We review the existing facility, benchmark it against current market terms across our lender network, and run a process to secure improved pricing, structure, or flexibility ahead of any maturity or covenant pressure point.

Question 8

How quickly can bridging finance be arranged for a time-sensitive property acquisition?

Accepted Answer

Bridging finance can typically be arranged in a matter of weeks, and in some cases faster, depending on the complexity of the asset and how quickly supporting information is available. JB Capital's established lender relationships and experience anticipating information requirements help minimise delays at every stage of the process.

Question 9

Can JB Capital arrange finance for real estate held through an offshore or trust structure?

Accepted Answer

Yes, JB Capital regularly arranges finance for real estate held through offshore companies, trusts, and other bespoke ownership structures common among UHNW and family office clients. We work closely with clients' existing legal and tax advisors to structure finance in a way that's compatible with the ownership vehicle, and identify capital providers experienced in lending against these structures.

Question 10

Does JB Capital work with family offices on direct real estate investment finance?

Accepted Answer

Yes, JB Capital works extensively with family offices on real estate investment finance, both for direct acquisitions and portfolio-level facilities. We understand the discretion, flexibility, and longer-term relationship family offices typically require, and act as a single point of contact across the full capital raising process.

Question 11

How do advisors structure debt for sustainability-linked or green building refinancings?

Accepted Answer

Commercial real estate assets achieving green certifications (BREEAM, LEED, NABERS) qualify for Green Loans or Sustainability-Linked Loans (SLLs). JB Capital structures these facilities to include margin ratchets — lowering your borrowing spread when pre-agreed energy efficiency, carbon reduction, or building retrofit targets are achieved.

Question 12

Why choose JB Capital to arrange your real estate finance?

Accepted Answer

JB Capital Group gives clients whole-of-market access to global capital solutions through a single relationship, backed by decades of experience on both the lending and advisory sides of structured finance. Our team draws on long-standing relationships with capital providers and a track record that anticipates roadblocks before they arise, with each transaction handled by the relevant subject matter specialist. As a fully independent and confidential advisor, we have no conflicting loyalties — only aligned interests with the client, and we persevere until the project is complete.

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