As senior lenders have become more cautious, mezzanine development finance is being utilised more than ever. Mezzanine finance enables developers to put in the minimal amount of equity into a project.
With competition high, new entrants have been encouraged to launch into the market and challenge for market share. They are often able to offer cheaper interest rates, more flexibility, and higher leverage. Mezzanine loans give developers a chance to improve their cash flow and even kick-start additional development projects.
Mezzanine funding is ideal for covering the shortfall between our clients’ cash input and their senior debt finance. Combining mezzanine loans and senior debt can often secure a lower blended rate than would normally be achieved with a single lender on a stretched debt development basis. Not only can it give a lower blended rate, but it can often mean higher overall leverage for development funding of up to 85% of gross development value (GDV) and up to 100% of total costs.
Our experienced development finance brokers can assist in securing stretched mezzanine, or super mezzanine development funding. This may be beneficial if you are a property developer looking for maximum leverage for a project without investing into the scheme. These arrangements allow for an additional layer of finance to be extended further to enable the funding package to be put together, without the need for profit share splits with investors.
We act as your partner in specialist finance, providing only the most personal of services to ensure we understand your situation, your goals, and your ambitions for your project. This one-on-one tailored service allows us to work tirelessly on your behalf to both exceed your expectations and secure a bespoke solution to best suit your requirements.
Get swift lending decisions on mezzanine finance applications
We boasts an extensive panel of family offices, specialist and private lenders with an appetite to provide mezzanine development funding for a range of residential and mixed-use projects. Over the years, our trusted relationships with these lenders have enabled our brokers to secure lending solutions at competitive rates. Most importantly, we work with clients to prepare and present mezzanine finance applications to ensure a swift and decisive answer from our targeted mezzanine lenders.
Each mezzanine development opportunity is assessed and negotiated on its own merits. We understand that no two clients are the same. Because of this, we take the time to sit down and understand your unique financial circumstances. This enables us to pinpoint the most suitable lenders with the capabilities to offer the most attractive funding solution for you.
We believe relationships are key to solving complex development cases, and so we have worked hard to build strong bonds with our network of funders, built on trust, to ensure we secure the best possible terms for your circumstances every time.
Let’s discuss your next mezzanine development opportunity and arrange a bespoke funding arrangement that works on your terms.