It is well known that the global capital market and banking crisis has led to a liquidity squeeze, and, on the back of tighter local monetary and banking policies, financial institutions are finding it difficult to service the demands of the sector.

Yet property developers, investors and deal-makers have not lost their appetite to transact – merely, the rules of the game have changed.

Continuiti believes it can enhance the delivery of product to market by developers and the acquisition of sound commercial property investment opportunities by private investors and small funds through their venture capital model.

Borrowers of commercial property finance have found it increasingly difficult to bridge the gap between valuation and lending (gearing ratio) – demand for quality property has meant that cap rates have declined, while lending rates have gone the other way.  This disparity creates a distortion in the requirement of equity.

Continuiti solves this by providing loans with a risk premium, or equity contributions, or a combination of both.

The value proposition to investors and shareholders in Continuiti is enhanced returns, while still enjoying the stability and security of the underlying land, brick ‘n mortar and annuity income streams. The value proposition to developers and investors is for them to continue delivering product to market, and being able to acquire viable income-producing properties.