The Privileged Position of Mortgage Debt
Private lenders such as Angas Prime fill the capital void created by the retreat of the banks from the commercial property sector.
Exposure to real estate debt is mitigated by the registered first mortgage security held by Angas Prime over its portfolio of investments. As the senior secured creditor in any real estate project, Angas Prime is at the top of the queue in the event of default by a borrower. From its privileged position, Angas Prime has first right to sell the land of the borrower and any other tangible assets in order to recover the debt.
Any mezzanine loans rank behind Angas Prime as do unsecured creditors such as trade suppliers. Equity owners come last in the queue.
Another feature of its privileged position is that Angas Prime will demand from loan applicants all of the relevant confidential information required before deciding whether or not to make the loan. This can include financial and operational data. Appropriate loan conditions are set by Angas Prime with this detail in mind.
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