Another term appearing increasingly often in equity proposals, preferred-equity structures, mezzanine facilities and private credit term sheets is MOIC.
MOIC stands for Multiple on Invested Capital. In simple terms, it measures how many dollars of value or cash are returned for each dollar invested.
If an investor contributes $5 million and ultimately receives $10 million, the investment has produced a 2.0x MOIC. The $10 million includes the return of the original $5 million plus a further $5 million of profit.
The calculation looks simple, but its use in property development finance can be confusing because the term may refer to several different things:
the return earned by the developer on the developer's equity;
the return earned by a joint-venture or preferred-equity investor;
the total value of realised and unrealised investments in a private fund; or
a minimum return, commonly called a MOIC floor, required by a mezzanine, preferred-equity or private credit provider.
These uses are related, but they are not identical.
A developer who understands MOIC can compare capital structures more accurately, communicate more effectively with investors and identify term-sheet provisions that may materially increase the cost of funding.
This guide explains how MOIC works, what different MOIC figures mean, how it compares with IRR and development profit, why investors care about it and why developers need to pay close attention to a MOIC floor on a short project.
What Does MOIC Mean?
MOIC is a ratio comparing the total value produced by an investment with the capital invested.
The general formula is:
MOIC = Total investment value divided by total invested capital
For a completed investment, total investment value will usually consist of all cash distributions received by the investor.
For an investment that has not yet been fully realised, total value may include:
cash already distributed;
the estimated current value of the investor's remaining interest; and
any other amounts included under the agreed calculation methodology.
This distinction creates two common forms of MOIC.
Realised MOIC
Realised MOIC is based on cash that has actually been returned. It does not rely on an estimate of what the remaining asset may be worth.
Unrealised or total-value MOIC
An unrealised or total-value MOIC includes the current estimated value of an investment that has not yet been sold, refinanced or fully distributed.
Because unrealised value depends on valuation assumptions, a projected 1.8x MOIC is not the same as receiving 1.8 times the invested capital in cash.
For a property developer assessing a single project, MOIC will commonly be calculated by dividing the total equity proceeds by the total equity contributed.
A Simple MOIC Example
Assume a developer contributes $4 million of equity to a townhouse development.
After the project is completed, all dwellings are sold and the debt is repaid, the developer receives $6.4 million.
The calculation is:
$6.4 million divided by $4 million = 1.6x MOIC
The 1.6x result means the developer received:
1.0x as the return of the original $4 million; and
0.6x, or $2.4 million, as profit.
A common mistake is to describe a 1.6x MOIC as a 160 per cent profit.
It is not.
A 1.6x MOIC represents total proceeds equal to 160 per cent of the invested capital. The profit component is 60 per cent of the invested capital.
What Different MOIC Results Mean
A MOIC figure can be translated into a simple statement about the amount returned for each dollar invested.
0.8x means the investor received 80 cents for each dollar invested and lost 20 cents.
1.0x means the investor recovered the original capital but earned no profit.
1.2x means each dollar became $1.20, producing a 20 per cent total gain.
1.5x means each dollar became $1.50, producing a 50 per cent total gain.
2.0x means the invested capital doubled.
3.0x means each dollar invested became three dollars.
MOIC does not, by itself, reveal how long the investment took, how much risk was accepted, whether the return was realised in cash or based on a valuation, or whether the figure is before or after fees and tax.
This is why MOIC should never be assessed in isolation.
How MOIC Is Used in Property Development
MOIC can be used at several levels within the same development.
“MOIC tells you how many times your money came back.”
— The Australian Property Development Handbook
Developer equity MOIC
The developer may calculate the return generated on the cash and recognised equity contributed to the project.
This helps the developer compare the capital efficiency of different projects and understand whether the projected profit adequately rewards the equity committed and the risks assumed.
Joint-venture investor MOIC
An external equity investor may contribute part or all of the required development equity in exchange for a priority return, a share of profits or both.
The investor will often assess the projected MOIC alongside IRR, downside protection, security, control rights, project duration and the developer's track record.
Preferred-equity MOIC
Preferred equity may have a contractual coupon, a priority return, a profit share and a minimum multiple. The investment may therefore behave partly like debt and partly like equity.
Mezzanine or private-credit MOIC floor
A subordinated lender or higher-leverage capital provider may quote an annual interest rate but also require a minimum MOIC.
The floor ensures that the provider earns at least a specified total return even if the facility is repaid earlier than expected.
Fund-level MOIC
An investment fund may report the combined value of distributions and remaining investments relative to the capital contributed by investors. This is a broader portfolio measure and may be calculated on a gross or net basis.
Before comparing any two MOIC figures, a developer should confirm what capital is included, what returns are included, whether the result is projected or realised and whether fees are deducted.
MOIC Is Not the Same as Development Profit Margin
A project's development margin measures profit relative to the project's revenue or cost base. MOIC measures value returned relative to invested capital.
They answer different questions.
Consider this simplified example:
Total development cost, including finance: $20 million
Gross realisation value: $24 million
Development profit: $4 million
Senior debt: $15 million
Developer equity: $5 million
The project produces a 20 per cent profit on cost because the $4 million profit is divided by the $20 million total development cost.
After repaying the $15 million debt, the developer receives $9 million from the $24 million of sale proceeds.
If the developer contributed $5 million, the equity MOIC is:
$9 million divided by $5 million = 1.8x MOIC
The same development therefore has:
a 20 per cent profit on total development cost; and
a 1.8x multiple on developer equity.
The figures differ because the development is partly funded with debt.
Debt can increase the return on equity when the project performs well because the developer contributes less of the total project cost. However, leverage also magnifies losses and reduces the buffer available when costs rise, values fall or completion is delayed.
A high projected equity MOIC created by aggressive leverage is not automatically superior to a lower MOIC supported by a more conservative and resilient capital structure.
MOIC vs Equity Multiple
In many property and private-market transactions, MOIC and equity multiple are used interchangeably.
Both generally compare total equity proceeds or value with total equity invested.
However, terminology is not perfectly standardised. One model may treat an equity multiple as all cash received divided by all equity contributions, while another may describe MOIC using realised distributions plus unrealised value. A term sheet may define invested capital as drawn capital, committed capital, peak capital or a specific tranche.
The label is less important than the written definition.
Developers should confirm:
the numerator;
the denominator;
the timing of each contribution and distribution;
whether fees, interest and profit share are included;
whether the figure is gross or net; and
whether unrealised value is included.
MOIC vs IRR: What Is the Difference?
MOIC and internal rate of return are often reviewed together because they provide different information.
MOIC measures the total amount of value created relative to capital invested.
IRR is an annualised, money-weighted rate of return that considers the timing and amount of cash flows.
MOIC answers:
How many times did the investor's money come back?
IRR answers:
At what annualised rate did the investment grow, based on when the money was contributed and returned?
Example: Same MOIC, different IRR
Assume two investments each require $5 million and each ultimately return $10 million.
Both investments produce a 2.0x MOIC.
If Project A returns the money after two years, the approximate annualised return is 41.4 per cent.
If Project B returns the money after five years, the approximate annualised return is 14.9 per cent.
The MOIC is identical, but Project A returns the capital much faster.
Example: Higher MOIC, lower annualised return
Assume Project C generates a 1.4x MOIC over two years. Its approximate annualised return is 18.3 per cent.
Project D generates a higher 1.8x MOIC, but takes four years. Its approximate annualised return is 15.8 per cent.
Project D creates more total value, but Project C produces the higher annualised return because the capital is returned sooner.
Neither measure is automatically more important.
An investor may prefer a longer project with a higher MOIC if the additional total profit justifies the extra time and risk. Another investor may prefer a faster return because the capital can be redeployed into another project.
For property development, the most useful analysis usually includes both MOIC and IRR, together with project margin, downside sensitivities and the expected duration of the investment.
Why Investors Care About MOIC
MOIC is popular because it is easy to understand.
A 1.7x projected return communicates quickly that every dollar invested is expected to become $1.70 before considering any qualifications in the calculation.
Investors use MOIC to assess:
the total profit potential of an investment;
whether the return is sufficient for the risk;
how efficiently capital is being used;
the difference between competing projects;
the effect of leverage on equity returns;
whether a project can satisfy a preferred return or profit-sharing waterfall; and
whether the remaining profit provides enough incentive for the developer.
MOIC is particularly useful when assessing a project's profit-sharing structure.
For example, an investor may receive:
return of invested capital first;
a preferred return;
a catch-up allocation;
a share of the remaining development profit; and
additional participation if a return hurdle is exceeded.
The investor and developer may achieve different MOIC results from the same project because the distribution waterfall allocates cash between them differently.
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Why Developers Should Care About MOIC
A developer needs to understand more than the project's headline profit.
Capital may be tied up for several years across land settlement, planning, construction, defects, sales and final distributions. If the equity return is too low, the project may not justify the time, guarantees, opportunity cost and execution risk involved.
MOIC can help a developer:
compare projects with different equity requirements;
compare a joint venture with a debt-funded structure;
assess how much value is surrendered to an external investor;
measure the effect of delays and cost increases;
understand whether additional leverage genuinely improves the developer's outcome;
negotiate return hurdles and profit-sharing arrangements; and
decide whether capital should be committed to the project at all.
The developer should also examine the residual return after every provider in the capital stack has been paid.
A funding proposal may reduce the initial cash contribution but transfer so much profit to the preferred-equity or mezzanine provider that the developer's remaining MOIC becomes unattractive.
What Is a MOIC Floor?
A MOIC floor is a contractual minimum total return payable to a capital provider.
It is commonly seen in preferred equity, mezzanine finance, structured private credit and some stretch-senior or profit-participating facilities.
The provider may quote an annual interest rate or preferred return, but the facility documents state that the total amount received cannot be less than a specified multiple of invested capital.
For example, a 1.25x MOIC floor generally seeks to ensure that the provider receives total value equal to at least 1.25 times the defined invested capital.
If the relevant invested capital is $4 million, a 1.25x floor equates to total receipts of $5 million under a conventional MOIC calculation:
$4 million return of capital; and
$1 million minimum return above capital.
The precise calculation depends entirely on the term sheet and facility documents.
The agreement must specify whether invested capital means the committed amount, total amount drawn, peak balance, average balance or a tranche-specific amount. It should also state whether establishment fees, line fees, interest, exit fees, default interest and profit participation count toward satisfying the floor.
A document may use the words MOIC, minimum multiple, minimum return or minimum interest in different ways. The operative definition, not the label, determines the cost.
Why Capital Providers Use MOIC Floors
Private capital providers incur due-diligence, legal, funding, management and opportunity costs when arranging a facility.
A short repayment can leave the provider with less total income than anticipated, even when the annual interest rate appears high.
A MOIC floor protects the provider's minimum transaction-level return if:
the project refinances early;
sales settle faster than expected;
the developer repays the facility shortly after drawdown;
the provider reserves capital that is used for only a short period; or
the transaction requires significant work relative to its duration.
The floor therefore shifts part of the early-repayment risk from the capital provider to the borrower.
Why Developers Must Watch the Floor on a Short Project
A short project can make a MOIC floor particularly expensive on an annualised basis.
Assume the following simplified preferred-equity or mezzanine facility:
Capital advanced at the start: $4 million
Interest rate: 14 per cent per annum
Establishment fee: 2 per cent
Minimum MOIC: 1.25x
Repayment after eight months
Ignoring compounding and assuming the entire $4 million is advanced on day one, eight months of interest at 14 per cent per annum is approximately $373,000.
The 2 per cent establishment fee is $80,000.
The interest and establishment fee total approximately $453,000.
However, a 1.25x MOIC floor on $4 million requires a minimum total return above principal of $1 million, provided the documents use the conventional calculation and count the stated fees and interest toward the floor.
The floor would therefore add approximately $547,000 above the ordinary interest and establishment fee in this simplified example.
A 1.25x multiple achieved over eight months is equivalent to an approximate annualised return of 39.8 per cent where there is one advance at the beginning and one repayment at the end.
That figure is not necessarily the facility's legal IRR. Actual cash flows may include staged drawdowns, monthly fees, retained interest, partial repayments and other charges. However, it demonstrates why the headline 14 per cent annual rate does not describe the full economic cost.
This is the meaning of the warning to watch the floor on a short project.
Repaying early may reduce ordinary interest but may not reduce the minimum amount payable under the floor. The borrower can therefore pay a high effective annualised cost for capital used briefly.
The opposite also needs to be considered. If the project runs for long enough, accumulated interest and fees may exceed the MOIC floor, in which case the floor may no longer be the binding cost. A delay can still be expensive because ordinary interest, extension fees and default provisions continue to accrue.
MOIC Floor vs Exit Fee
A MOIC floor and an exit fee can both increase the amount payable at repayment, but they operate differently.
An exit fee is usually a specified percentage of the facility, outstanding balance, gross realisation value, sale proceeds or another agreed base.
A MOIC floor tests whether the provider's total return reaches a minimum multiple.
A transaction may contain both provisions.
For example, the provider may receive an annual coupon, an establishment fee, an exit fee and a 1.25x minimum MOIC. Depending on the documents, the exit fee may count toward the floor or may be payable in addition to it.
This is why term sheets should be modelled as complete cash flows rather than compared only by interest rate.
Gross MOIC vs Net MOIC
Gross MOIC is calculated before some or all fees, costs, carried interest, promote or tax attributable to the investor.
Net MOIC measures what the investor retains after the deductions specified in the calculation.
For a development joint venture, the distinction may include:
acquisition and transaction costs;
asset-management or development-management fees;
financing costs;
investor management fees;
carried interest or promote;
performance fees;
taxes; and
costs incurred outside the project special-purpose vehicle.
A projected 2.0x gross MOIC may produce a materially lower net MOIC after the investment structure's fees and waterfall are applied.
Any return presentation should clearly state whether it is gross or net and whose return is being measured.
Realised MOIC vs Projected MOIC
A projected MOIC is based on forecast costs, values, sales, rents, timing and funding assumptions.
A realised MOIC is based on actual outcomes.
The difference can be significant because property development is exposed to:
construction cost escalation;
latent conditions;
planning delays;
interest-rate changes;
slower sales or leasing;
valuation movements;
settlement defaults;
builder insolvency;
extension costs;
tax changes; and
unexpected project expenses.
Projected MOIC should therefore be assessed under multiple scenarios.
A credible model may show:
base-case MOIC;
downside MOIC after lower values;
downside MOIC after higher costs;
delayed-completion MOIC;
combined downside MOIC; and
the point at which investor or lender return hurdles are no longer met.
A project that produces an attractive base-case MOIC but falls below 1.0x under a modest stress may be more fragile than the headline return suggests.
How Leverage Affects Equity MOIC
Debt can increase equity MOIC when the development return exceeds the cost of debt.
However, the relationship is not one-directional.
Higher leverage also creates:
more interest and fees;
greater sensitivity to delays;
tighter covenants;
less capacity to absorb cost overruns;
greater refinancing and settlement risk;
possible presale or pre-leasing requirements;
additional valuation risk; and
a higher probability that equity is impaired if the project underperforms.
The correct question is not simply whether more debt increases the base-case MOIC.
The developer should ask whether the incremental return justifies the incremental risk and whether the project remains financeable under downside scenarios.
A structure that produces a 2.2x base-case developer MOIC but falls to 0.7x after a moderate cost and value shock may be less attractive than a structure producing a 1.8x base case and 1.2x under the same stress.
Common MOIC Mistakes
Treating MOIC as an annual return
A 1.5x MOIC does not mean a 50 per cent annual return. It means a 50 per cent total gain over the entire investment period before considering the calculation's other qualifications.
Ignoring the return of capital
A 1.3x MOIC includes the original 1.0x capital. The profit is 0.3x, not 1.3x.
“A high IRR can still hide a thin multiple.”
— The Australian Property Development Handbook
Comparing gross with net
A gross project MOIC should not be compared directly with an investor's net MOIC after fees, promote and tax.
Ignoring timing
A 1.8x return over two years is materially different from a 1.8x return over six years.
Ignoring interim cash flows
Two investments can have the same final MOIC but different IRRs because one returns capital progressively while the other returns everything at the end.
Using unsupported unrealised values
An unrealised MOIC depends on the current valuation methodology. An optimistic end value can overstate the apparent return.
Assuming every term sheet defines MOIC the same way
The calculation may use committed capital, drawn capital, peak exposure or another base. Fees and interest may or may not count toward the floor.
Confusing project MOIC with developer MOIC
The project may produce one overall equity return while the developer and external investor receive different returns after the waterfall is applied.
Ignoring risk
MOIC measures value, not risk. A highly leveraged speculative project and a substantially de-risked project can display the same projected MOIC.
What Is a Good MOIC for a Property Development?
There is no universal MOIC that is good for every property development.
The appropriate return depends on:
project duration;
planning status;
asset class;
location;
construction and builder risk;
sales or leasing risk;
leverage;
guarantees and security;
the investor's position in the capital stack;
whether the return is gross or net;
whether it is projected or realised;
the quality of the developer and project team;
downside protection; and
alternative uses of the capital.
A senior secured lender may accept a lower total return because it has first-ranking security and is repaid before subordinated capital and equity.
A preferred-equity investor may require a higher return because it takes greater loss risk and has less certainty over timing.
The developer may require a still different return because the developer contributes expertise, guarantees, time and reputational risk in addition to cash.
Rather than relying on a single market benchmark, the parties should assess whether the proposed return is appropriate for the specific risk, duration and contractual protections.
How to Calculate MOIC Properly in a Development Feasibility
A useful MOIC analysis should follow a clear process.
Running your own numbers?
Open the feasibility calculators →1. Confirm the return being measured
Decide whether the calculation is for the total project equity, developer equity, an external investor, a preferred-equity tranche or a lender's minimum return.
2. Identify every capital contribution
Include the amount and date of each contribution. Consider cash, recognised land equity, later cost-overrun contributions and reinvested distributions.
3. Identify every distribution or remaining value
Include the amount and date of sale proceeds, refinance distributions, operating cash flow and final residual value attributable to the relevant investor.
4. Apply the distribution waterfall
Allocate cash according to the agreed order, including return of capital, preferred return, catch-up, profit share and promote.
5. Calculate gross and net outcomes
Show which fees, costs and taxes are deducted in each version.
6. Calculate both MOIC and IRR
MOIC shows total value creation. IRR shows the timing-adjusted annualised return.
7. Run sensitivities
Test lower values, higher costs, delayed completion, slower settlements, additional interest and changes in the funding structure.
8. Reconcile the return to the project feasibility
The sum of all stakeholder distributions must reconcile with the project's available cash after debt, costs and taxes included in the model.
9. State the methodology
The investment paper or funding proposal should define invested capital, distributions, valuation basis, fees and timing assumptions.
Questions to Ask When a Term Sheet Includes a MOIC Floor
A MOIC provision should be converted into dollars and modelled across the expected and downside repayment dates before the term sheet is accepted.
Key questions include:
What is the exact minimum multiple?
Is the denominator committed capital, drawn capital, peak debt or another amount?
Is the floor calculated separately for each drawdown or across the whole facility?
Does the numerator include the return of principal?
Which interest and fees count toward satisfying the floor?
Is the establishment fee included or payable in addition?
Is any exit fee included or payable in addition?
Does default interest count toward the floor?
How are partial repayments treated?
Is the floor recalculated if the facility limit changes?
Does the floor apply after a refinance, sale or voluntary prepayment?
Is there a lower floor after a specified date?
Is the floor based on the original term or the actual repayment date?
Does unused committed capital affect the calculation?
Is there a separate profit share or equity kicker?
What amount would be payable at the expected repayment date?
What amount would be payable if the project exits three, six or twelve months earlier?
What amount would be payable if the project is delayed?
The most important output is not the quoted multiple. It is the dollar cost under realistic cash-flow scenarios.
Illustrative Comparison: Two Capital Proposals
Assume a developer needs $4 million of additional capital for a project and expects to repay it in nine months.
“Return on equity is a ratio; MOIC is the multiple.”
— The Australian Property Development Handbook
Proposal A
16 per cent annual interest
2 per cent establishment fee
no minimum MOIC
Ignoring compounding, Proposal A produces approximately $480,000 of interest over nine months plus an $80,000 establishment fee, for a simplified cost of $560,000.
Proposal B
13 per cent annual interest
1 per cent establishment fee
1.25x minimum MOIC
The quoted annual rate and establishment fee appear cheaper.
However, a conventional 1.25x floor on $4 million requires a minimum $1 million return above principal, subject to the facility's definitions.
If the interest and fee count toward the floor, the total cost remains at least $1 million.
Proposal B is therefore approximately $440,000 more expensive than Proposal A in this simplified nine-month scenario, despite having the lower interest rate and establishment fee.
The comparison could change if the facility is drawn progressively, remains outstanding longer, includes different control rights or provides materially more leverage. The example demonstrates why annual rates cannot be compared without modelling minimum-return provisions.
How to Improve Project MOIC Without Hiding Risk
A developer may improve the quality of the projected return by addressing the project's fundamentals rather than simply adding leverage.
Potential strategies include:
acquiring the site at a price supported by realistic residual value;
improving planning certainty before committing major capital;
designing a product aligned with demonstrated market demand;
reducing unnecessary construction complexity;
negotiating a well-defined building contract;
improving procurement and cost control;
shortening the programme without using unrealistic assumptions;
staging the development where appropriate;
securing credible presales or leases;
reducing selling and holding periods;
matching the debt term to a realistic exit timetable;
comparing senior, stretch senior, mezzanine and equity structures on total cost;
negotiating a distribution waterfall that preserves incentives for both investor and developer; and
retaining enough contingency and liquidity to avoid distressed capital raising.
The objective should be a robust risk-adjusted return, not the highest possible base-case spreadsheet result.
Frequently Asked Questions
What does a 2.0x MOIC mean?
It means the total value or cash returned equals twice the defined invested capital. If $3 million is invested and $6 million is returned, the MOIC is 2.0x. The profit is $3 million, or 1.0x above the return of capital.
Is MOIC the same as profit percentage?
No. A 1.5x MOIC includes the return of the original investment and represents a 50 per cent total gain. It does not represent a 150 per cent profit.
Is MOIC the same as equity multiple?
The terms are often used interchangeably, but definitions can vary. The calculation methodology in the model or legal documents should always be checked.
Is MOIC better than IRR?
Neither is universally better. MOIC shows total value created, while IRR accounts for the timing of cash flows. They are most useful when reviewed together.
Can two investments have the same MOIC and different IRRs?
Yes. If one returns the money sooner, it will generally have the higher IRR even when the total MOIC is the same.
These principles come from our free guide.
Download the handbook →What is a MOIC floor?
It is a minimum total return required by a capital provider. If ordinary interest and fees do not reach the minimum multiple, an additional amount may be payable at exit, depending on the facility documents.
Why is a MOIC floor expensive on a short project?
The minimum dollar return may remain payable even though the capital is repaid quickly. This can create a high effective annualised cost.
Does a MOIC floor include principal?
Under a conventional MOIC calculation, the total value includes the return of principal. However, some term sheets use different wording or define a minimum return separately. The documents must be reviewed carefully.
Do all fees count toward a MOIC floor?
Not necessarily. The agreement should specify whether interest, establishment fees, line fees, exit fees, default interest and other payments count toward the minimum.
Can a high MOIC still be a poor investment?
Yes. The project may take too long, involve excessive risk, depend on aggressive valuations or require additional capital not reflected in the headline figure.
Can leverage improve MOIC?
It can improve the base-case equity MOIC by reducing the amount of equity invested, but it also increases finance cost and downside risk. The full stressed outcome should be considered.
Should a developer quote gross or net MOIC to an investor?
Both may be useful, but each must be clearly labelled and calculated consistently. An investor will generally focus on the net return expected after the applicable fees and waterfall.
Final Thoughts
MOIC is one of the simplest return measures in property development finance, but it can become one of the most misunderstood.
At its core, MOIC answers a straightforward question: how many dollars of value are produced for every dollar invested?
That simplicity makes it useful for developers, equity investors, preferred-equity providers and private lenders. It allows parties to compare total value creation and understand how returns are divided through the capital stack.
However, MOIC does not account for time, risk or the reliability of the underlying valuation. It can also produce very different economic outcomes depending on how invested capital, fees, interim distributions and unrealised value are defined.
For developers, the most important distinction is often between project MOIC and a contractual MOIC floor.
A projected equity MOIC estimates the return generated by the development. A lender or investor MOIC floor creates a minimum amount payable under the funding documents.
On a short project, that minimum can override the apparent benefit of early repayment and make the effective cost substantially higher than the quoted annual interest rate.
Every MOIC provision should therefore be translated into dollars, modelled at multiple exit dates and reviewed alongside IRR, total finance cost, control rights, leverage and downside risk.
How BluCow Capital Can Help
We can help compare senior debt, stretch senior, mezzanine finance, preferred equity and joint-venture capital using the complete expected cash flows rather than the headline interest rate alone.
Where a proposal includes a minimum MOIC, exit fee, profit share or other return floor, we can help model the amount payable under the expected programme and earlier or delayed exit scenarios. This allows the developer to understand the true cost of the capital and its effect on the developer's residual return.
To discuss the capital structure for an upcoming property development, contact BluCow Capital or submit an enquiry through blucowcapital.com.au.
Disclaimer
This article provides general information only and does not constitute financial, legal, tax, investment or credit advice. MOIC terminology and calculations are not standardised across all investments or funding agreements. Facility pricing, security, fees, return floors, profit participation and calculation methods vary between providers and transactions. All examples are simplified and illustrative. Developers should obtain advice appropriate to their circumstances and have all term sheets, facility documents, security documents and investment agreements independently reviewed before entering into a transaction.