A well planned mezzanine facility produces an increased return to the developer and allows them to preserve equity for other opportunities. We source mezzanine and structured debt funding for existing properties as well as for construction and development projects.
Mezzanine debt bridges the gap between the senior debt and the developers own equity. Mezzanine funding is simply the term used for funding the gap between your primary or first mortgage and the total development costs. Mezzanine Finance is a form of subordinated debt behind that of senior debt in terms of ranking on any claim on property assets and ahead of equity.
A Mezzanine loan is generally only provided when the project is ready to begin and the relevant risk mitigants are in place, such as presales, senior debt loan offer, valuation report, quantity surveyors report and development approvals are in place.
The mezzanine funding will generally be secured via a registered 2nd mortgage, a 2nd ranked fixed and floating charge over the borrowing entity and guarantees from its directors.
We can facilitate requirements from $100,000 to $20,000,000