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.
|Acquisition & Construction Finance|
|Commercial Office Project|
|Senior Debt $18.5M|
|Mezzanine Finance of $2.5M|
|Office & Showroom Development|
|Senior Debt of $4.4M|
|Mezzanine Finance of $1M|
|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.