Mezzanine Finance
Strategic second mortgage financing to maximize leverage and enhance returns on your property investments and developments.
Why Choose Our Mezzanine Finance
Unlock higher leverage and enhanced returns with our sophisticated mezzanine finance solutions, designed for experienced property professionals.
Enhanced Returns
Maximize leverage and potentially increase overall project returns through strategic capital stacking.
Risk Management
Structured subordination provides clear hierarchy while maintaining appropriate risk-return balance.
Flexible Terms
12-36 month terms with interest capitalization options to match your project timeline.
Expert Structuring
Our team specializes in complex capital structures and mezzanine finance arrangements.
Up to 85% Combined LVR
Achieve higher leverage ratios when combined with senior debt facilities.
Quick Execution
Streamlined approval process for experienced developers and investors.
Overview
Our Mezzanine Finance solutions provide additional capital to bridge the gap between senior debt and equity, allowing you to maximize leverage and enhance returns on your property investments and development projects.
As a second mortgage financing option, mezzanine finance sits behind your senior debt but offers the opportunity to increase your total funding capacity and potentially improve your overall project returns through strategic capital stacking.
Key Features
- Loan amounts from $1M to $20M
- Terms ranging from 12 to 36 months
- Up to 85% combined LVR with senior debt
- Subordinated to senior debt facilities
- Interest capitalization available
- Potential profit participation structures
Eligibility Criteria
Borrower Requirements
- Experienced property developers or investors
- Proven track record in property development/investment
- Strong financial position and serviceability
- Clear exit strategy and refinancing plan
Project Requirements
- Commercial, residential, or mixed-use projects
- Senior debt facility already in place or approved
- Viable project with strong fundamentals
- Appropriate risk-adjusted returns
Success Stories
Real examples of how our mezzanine finance solutions have helped clients achieve their property investment and development goals.
Mixed-Use Development - Melbourne
$8.5MChallenge
Developer needed additional capital to complete a 120-unit mixed-use project after construction cost overruns exceeded senior debt capacity.
Solution
Provided $8.5M mezzanine finance at 13.5% p.a. with 18-month term, bringing total project funding to 82% of GDV.
Outcome
Project completed on schedule, developer achieved 28% IRR, mezzanine facility repaid in full at completion.
Commercial Acquisition - Sydney
$12MChallenge
Investment group required additional leverage to acquire premium office building, with senior debt limited to 65% LVR.
Solution
Structured $12M mezzanine facility with profit participation, achieving 80% combined LVR for the acquisition.
Outcome
Successful acquisition completed, property value increased 15% within 12 months, early refinancing achieved.
Industrial Development - Brisbane
$6.2MChallenge
Experienced developer needed gap funding for large-scale industrial project with pre-committed tenant.
Solution
Provided $6.2M mezzanine finance with interest capitalization and performance-based pricing structure.
Outcome
Development completed ahead of schedule, tenant took possession as planned, full facility repaid at practical completion.
Understanding Mezzanine Finance
Key concepts and considerations for successful mezzanine finance structures in property investment and development.
Capital Stack Structure
Understanding how mezzanine finance fits between senior debt and equity in your capital structure, providing enhanced leverage while maintaining manageable risk profiles.
Subordination Agreements
How mezzanine finance ranks behind senior debt but ahead of equity, with clear documentation outlining payment priorities and security arrangements.
Interest Capitalization
The ability to capitalize interest payments during the loan term, preserving cash flow for project completion or operational requirements.
Profit Participation
Some mezzanine structures include profit sharing or equity kickers, aligning lender and borrower interests for optimal project outcomes.
Exit Strategies
Planning your mezzanine finance exit through refinancing, sale, or project completion, ensuring smooth transition to permanent financing.
Risk Assessment
How mezzanine lenders evaluate project risk, sponsor experience, and market conditions to structure appropriate terms and pricing.
Mezzanine Finance Calculator
Calculate your mezzanine finance structure, combined LVR, and total project funding capacity.
Mezzanine Finance Calculator
Capital Stack Summary
* This calculator provides estimates only. Actual rates and terms may vary based on individual circumstances, project assessment, and market conditions. Contact us for a detailed quote.
Frequently Asked Questions
Get answers to common questions about mezzanine finance.
Apply for
Complete this form to start your mezzanine finance application. Our lending specialists will contact you within 24 hours.
Ready to Maximize Your Leverage?
Speak with our mezzanine finance specialists today to discuss how we can help structure your next property investment or development project.