Mezzanine
For developers looking to supplement their development funding we can assist with a range of mezzanine finance solutions. Our experienced advisors have a wealth of knowledge and will discuss your specific situation with you, enabling you to make an informed decision on the best funding for you.
How It Works
Lenders will offer you funding up to 90% of the total cost of the project, or 70% of the end value of the project. In some instances there will be a shortfall in day one funding to allow you to commence your project, and that is where mezzanine funding is used.
Our funders will bridge the difference between the lenders deposit needs and your capital. Therefore you can continue with your project.
Example:
An experienced developer, building 64 apartments and a commercial unit had a requirement for £13.44m building costs and the maximum funding available towards a £4.85m land purchase. The end value was £25.2m.
The lender was happy to lend £16.38m but the client did not have the £1.91m plus stamp duty to support the remaining purchase price of the land.
We arranged mezzanine funding in addition to the development finance for the land purchase which covered the cost of stamp duty plus £566,000 deposit towards the land.
The developer was delighted that the maximum contribution for the entire project was just 10%.
How We Help
We can assist arrange the shortfall with equity funders who have an appetite to lend a total of 95%, or even 100% of project costs, either in their entirety, or in a second charge position, behind a Debt funder.
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Developer Loans
Positive House
GP Centre
Yeoman Road
Ringwood
Hampshire
BH24 3FF