Moelis enters cladding rectification game

Investment bank Moelis has entered the strata lending market to help apartment owners in NSW remediate their combustible cladding, after agreeing to fund specialist lender Lannock’s warehouse facility and speed up moves to securitise cladding rectification loans.

Moelis will provide mezzanine finance worth tens of millions of dollars – adding to senior debt worth up to hundreds of millions Credit Suisse has already been providing – and allow Lannock to package up loans for cladding and other defect rectification and sell them to bond investors.