Services

Mezzanine Finance

B2B Capital can arrange mezzanine funding for both construction and property investment loans tailored to the requirement of the project. 

Mezzanine finance is the cornerstone of our business. Each year we arrange and provide well over $100 million in mezzanine finance. This capacity gives us access to wider and more specialised sources of funds than other providers of mezzanine finance.

Mezzanine funding is typically sourced from specialist financiers and private investors bearing a fixed interest rate.  Mezzanine refers to a subordinate debt or preferred equity.  Financing can be completed through a variety of different structures based on the specific objectives of the transaction and the existing capital structure already in place.  Therefore, B2B Capital recognises that no two projects are the same and would assess borrowing capacity on an individual basis.
 
Mezzanine debt allows the developer to increase project gearing while enhancing their return on equity. This lowers the overall cost of capital to the developer. Whilst a senior (or prime lender) will typically lend 80% of project costs, the mezzanine lender will lend beyond this amount (sometimes up to 100% of costs). This debt is also not typically covered by presales, meaning that the mezzanine lender carries a higher level of project and market risk than the prime lender.