Originally Posted by
RyeSloan
The SG is simply the source of capital.
The intermediary essentially does the donkey work. Most likely doing due diligence on the proposals from those seeking to raise the capital, the legals around the specific bond issuance and looking after the flow of monies between the parties and the like.
The assumption here is the bond interest will be lower (and thus the lower funding costs will ultimately feed through to lower rent) than what can be found on the normal capital markets and that the SG uses that return on capital and the return of capital to feed back into the loop.
All seems sensible enough but without actual ££ figures on how much better that approach is and how large this is in ££ against the rest of funding in the sector who really knows if it’s making any difference and if so how much.
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