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What is Mezzanine Funding?

Mezzanine development funding is the difference between the total cost of the project and what the Prime Lender is prepared to lend (the dark blue shaded area) which is sometimes reduced by the Developer investing some equity (light green) in return for which the Developer receives a greater share of the overall project profit. - see example 1 below.

What does it offer?

We can provide 100% of funding for projects of £500K Gross Development value (GDV) to £3M GDV (including cost of land)
  • We operate country-wide
  • We can give a decision in one week and provide funding in 28 days
  • We deal with a selection of prime commercial banks providing first mortgages (70%)
  • WE CAN PROVIDE UP TO 30% OF THE BALANCE OF THE FUNDING (MEZZANINE FUNDING) - see diagrams above
  • Developer typically retains from 50% to 65% of the profits dependent on developer’s level of investment and credit rating