| Spread your financial exposure whilst at the same time doubling the return on your equity AND increase your property development capacity.
By using Mezzanine funding, developers are in a position to move onto their next development(s) while still completing current projects.
Mezzanine funding could theoretically treble your development capacity, i.e. for every £100,000 of equity a developer has available the “Mezzanine contribution” would be £200,000 (see our table below). In addition to increasing development capacity by carrying out two to three developments in the same period (with staggered commencement dates) the developer is in a position to SPREAD THEIR RISK over more than one project at any given time. Finally, when using Mezzanine funding the return on your equity (ROE) is virtually doubled on each development – see comparative tables below.
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Spread Your Risk
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