MFEG Mezzanine Finance

Mezzanine financing can be a great tool for the right project

Mezzanine

Mezzanine financing is a form of funding where a debt position is taken that is subordinate to a senior debt facility but ahead of any equity positions.

Mezzanine financing can be a great tool for the right project in reducing the amount of equity contributed by a developer and potentially enabling them to spread their capital across multiple projects or get started earlier on a project. A typical mezzanine facility is secured by a 2nd mortgage on the title and is paid out after the senior debt but before any equity.

At MFEG, we frequently facilitate mezzanine funding as a means for property developers to get the necessary capital to complete a project and maximise their return on cost.

As both an originator and a direct lender, our ability to structure flexible and working solutions for qualifying projects is unparalleled in the industry.

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Funded Transactions

Morwell, VIC

41.6ha (102.8 acres)
Lending Amount: $4.2 m
Solution Provided: Land Hold First Mortgage

Elwood, VIC

6 Luxury Townhouses
Lending Amount: $6.4 m
Solution Provided: Residual Stock

Box Hill, VIC

Construction - 3 retail, 6 offices, 56 apartments
Lending Amount: $21.9 m
Solution Provided: First Mortgage and
Mezzanine Funding

Gosford North, NSW

40 apartments
Lending Amount: $11.7m
Solution Provided: First Mortgage with Preferred Equity Facility

Coburg North , VIC

63 Premium Warehouses and Office Warehouses
Lending Amount - $13 m
Solution Provided - First Mortgage

Oakleigh, VIC

73 apartments and 2 retail
Lending Amount: $22m
Solutions Provided: First Mortgage and Mezzanine Funding

Port Melbourne, VIC

16 Luxury apartments construction
Lending Amount: $12.8
Solutions Provided: First Mortgage

Preston, VIC (Stage 1)

114 apartments and 1 retail
Lending Amount: $31m
Solution Provided: First Mortgage and Mezzanine Funding

Greensborough, VIC

36 apartments
Lending Amount: $13m
Solution Provided: First Mortgage, Mezzanine Funding and Cost Overrun Facility

Clifton Hill, VIC

17 apartments
Lending Amount: $7m
Solution Provided: First Mortgage with no guarantee required from unit holders of Borrowing Entity

Review our other lending options

Remember at MFEG we tailor borrowing for each client. Be sure to review all six approaches below and contact us with a quick or detailed enquiry.

1. Property Development Finance

2. Mezzanine

3. Preferred Equity

4. Land

5. Residual Stock

At the completion of a construction project, a developer will often require further funding to either pay out construction debt and equity or to realise equity for their next project. Whether for residential or commercial projects MFEG is able to arrange excellent residual stock funding at the completion of a project either directly or through our network of funding partners and investor.

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6. Short Term Lending