Mezzanine Funds are used to meet the Developers needs for additional funds when insufficient equity is available to the Developer. Accordingly, the Developer can unlock equity from other assets and/or Development Projects, and inject these funds as Mezzanine Funds into the new Development Project.
Mezzanine Funds are secured by registered second mortgage and are repaid from the Development Projects completion and sale.
To date, the Principal, Mr Clive Johnson, has been directly responsible for the initial negotiation, executing the Mandate, securing the required Mezzanine Funds, documenting the transaction with lawyers and settlement of it on over 65 Mezzanine transactions on over $500 million worth of Development Projects (principally in Sydney).
A few examples of Mezzanine Funds delivered to date for these completed Development Projects, namely: –
- 110 apartments at Waitara, Sydney,
- 37 apartments in Pyrmont, Sydney; and,
- 16 SEPP-5 apartments at St Ives, Sydney.
Mezzanine Funding can make or break a Development Project – even if you have the best development site, approved DA, a builder who is reliable and builds to time and budget, if you cannot finance the transaction your finished as a Developer – after all, the Tax man will always leave you with something, but the mortgagee will (when he sells you up) will leave you with nothing!
It’s this experience this Principal brings to each transaction that will make the difference to you.
We don’t rely on any one strategy and you only remunerate us – so we work to get you the best outcome that secured sufficient Mezzanine Funds to meet your needs.