Mezzanine Finance Loans

Property Development & Acquisitions Assisted by Mezzanine Finance

We specialise in 'mezzanine finance' funding lines whether you seek funding as a property developer or seek to purchase property and need the mezzanine finance slice for short term basis.

money-triangle  'Mezzanine finance' mortgage or 'loan' in relation to property typically refers to a tier in a company's capital structure between debt and equity, or can be simply described a 'second layer' of lending subordinated to the the 'first charge'. Just as a mezzanine floor in architecture is an intermediate floor between two different floors of a building.

money-triangle  Mezzanine funding typically consist of second lien debt in property development and acquisition transactions. In addition, mezzanine debt is similar to bank debt may include mandatory prepayments tied to debt or separately negotiated with the funder. Mezzanine finance is prevalent in deals with inherent market risk, therefore functioning as a buffer to the senior lenders credit exposure and risk mitigation mechanism.

money-triangle  At times Mezzanine funders may seek to enhance their returns by negotiating for equity participation alongside their debt investments for a property development project (at times referred to as an "equity kicker". We have been involved in structuring joint ventures where the stakeholder has had limited capability for a cash injection, or additional security with no real equity giving 100% funding, but is often in exceptional circumstances.

money-triangle  Property developers and stakeholders often use mezzanine investment loans to bridge a gap between the first mortgage and their equity investment in a particular project. Mezzanine financing can often provide anywhere between 10% and 40% of a development project's funding needs. But in general a contribution is required from the property developer, as hard cash or security.

money-triangle  We specialise in 'mezzanine finance' and have access to a wide spectrum of funders from large institutional lenders to niche lenders and private equity for example: private mezzanine loan firms, finance companies, mortgage REITs, private equity firms, hedge funds, institutional investors and investment banks and High-Net-Worth investors, and syndicated private and institutional investors. We were one of the frontier companies in regards use and promotion of 'mezzanine finance' in the UK with our dedicated website:

money-triangle  If you seek Shariah or Islamic Mezzanine finance we can assist, but this loan facility is minimum tranche of £3,000,000 plus, whilst non-Shariah or conventional finance can be £50,000 plus, and often will be priced on risk and leverage.

money-triangle  We can assist with 'mezzanine finance' to enable structured finance solutions for 'property development' and 'projects' in the UK, plus selective international basis determined by the strength of the project.

money-triangle  Mezzanine finance at times is considered to some as being 'expensive', but our concern is profitability. There is means to structure a property proposal and sweat the mezzanine debt to maximum effect whilst structuring a proposal - when looking at project development costs one has to weigh, the cost of opportunity and return. In the current economic climate where funding is tight for property development projects, 'mezz funding' can make the difference to put a project in play or not.

Please visit our specialist company web site dedicated to 'mezz funding' for additional information >>>

If you have a property development project or acquisition seeking an injection of mezzanine finance - please message us or feel free to phone and let us help you structure your next deal.