Mezzanine Finance

Our CEO Rob Henderson-Smart was one of the early pioneers in Australia of mezzanine finance for property development projects.

Mezzanine finance is essentially equity risk capital provided in the form of a loan and ranks behind the primary lender in a security sense.  It can be a good alternative to a 50:50 joint venture in that the profit share required by mezzanine lenders is usually in the range of 15-35%.

Mezzanine finance is a great way for developers to make-up the equity shortfall necessary to meet the maximum gearing levels lenders are prepared to accept.

These types of facilities require careful structuring and pricing to ensure developers don’t end up with all the risk and not a great return.

Some prior project examples are shown below.

$21,000,000
 
Acquisition & Construction Finance
 
Commercial Office Project
Camperdown
 
Senior Debt $18.5M
 
Mezzanine Finance of $2.5M
 

 

Property & Business Joint Ventures

$5,400,000
Office & Showroom Development
Alexandria
Senior Debt of $4.4M
Mezzanine Finance of $1M
$19,510,000
Construction Finance for the Development of
Radisson Kestrel Hotel
Senior Debt of $ 18M
Mezzanine Debt of $1.51M

We consider all loan sizes and welcome your enquiry to discuss any requirements.

RHS EMAIL

rob@smartcp.com.au

RHS MOBILE

+61 417 248 547

RHS MOBILE

+61 2 9960 7827