Mezzanine Finance
Second-mortgage capital to reduce your cash equity requirement
Mezzanine finance sits behind your senior facility in second position, secured by a second registered mortgage. It bridges the gap between the senior loan and your equity contribution, reducing the cash you need to inject.
We arrange mezzanine from specialist non-bank lenders and private credit funds, either as a standalone tranche behind your bank senior or as part of a single-lender structure.
Key Terms
- LVR: Up to 85% of GRV (senior + mezz combined)
- Security: Second registered mortgage
- Rate: 12–18% p.a. (capitalised)
- Pre-sales: Follows senior lender requirements
How mezzanine reduces your equity
If your senior facility covers 65% of GRV and the project requires 80%, a 15% mezzanine tranche bridges that gap. The result: less cash equity from you, with both tranches capitalised so there are no cash repayments during construction.
Best Suited To
- Developers maximising leverage while keeping equity deployment low
- Projects where senior debt alone leaves a significant equity gap
- Sponsors who have agreed senior terms and need to fill the stack
Mezzanine loans that sit behind your senior facility to reduce the cash equity your project needs. Second mortgage development capital arranged Australia-wide.
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