- Second or third mortgages
- Equity participation mortgages
- Directly or indirectly, units/shares in Canadian mortgage trusts, mortgage funds, limited partnerships, co-investment agreements, and parallel investment agreements where the underlying assets comply with the Mezzanine Fund’s investment policies
- Multi-family residential (including condominium projects)
- Seniors housing
Typically one to five years
Mezzanine mortgages can have fixed or floating interest rates. The size of risk premium varies based on factors specific to each project. BCI’s portfolio managers utilize a multi-factor risk rating model to assess risk levels of individual investment opportunities. The risk factors that are evaluated include: location; structure quality; tenant financial strength (pre-leasing levels) and/or pre-sale amount; borrower and covenantor’s financial strength; loan-to-value level; loan-to-cost level; debt servicing ability; developer’s experience.
Typical range $5,000,000 to $50,000,000
The Mezzanine Fund only provides construction financing to experienced developers and utilizes qualified quantity surveyors to oversee development progress. The Mezzanine Fund also requires significant pre-sales and/or pre-leasing levels for the project, as well as sufficient profit margin levels. No mortgages will be funded without a property inspection, current market appraisal, geotechnical inspection report and environmental audit.