A distressed property be it a development site, close to completion development project, almost ready to start development project or a commercial building but is distressed for the following reasons.
- Relationship failure. The corporate owners of the property may be entering a separation or business dispute and require a property to be sold quickly. To achieve this goal, they reduce the price.
- Declining value. For various common reasons, the property may be potentially losing its value and its vendors may wish to liquidate before the debt becomes higher than the value.
- Mortgagee-in-possession. A commercial borrower may no longer be able to afford mortgage repayments, or refinance their development site or commercial building
- Deceased estate. It is often the case that the trustee of an existing loan advance, can no longer access drawdowns of a construction loan in the event of death the mortgagee. The facility is restructured to enable drawing down any further funds.
Equity & Co has access to a pioneering book of distressed property that is available to us prior to the market and tier 1 real estate agents being offered the property. Enabling Equity & Co to turn a distressed asset into a non-distressed asset through assignment and non-assignments to get maximum value returned to the owner.