Relatively young developers with solid experience but light on equity approached STAC Capital’s Dale Sparke for advice on how to increase their development pipeline with minimal equity.
The Solution
Impressed with their experience and capabilities, their drive, honesty and reliability, as well as the project strategy, we offered to personally provide Preferential Equity into the project to support the developers, allowing them to acquire the site pre-DA with minimal equity.
The Outcome
The developers were able to acquire the site at auction with confidence and with limited equity. Furthermore, with individuals within STAC having put in their own funds as a form of structured equity, they had absolute confidence that debt for the purchase & construction would be achieved and on optimal terms.
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