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Mezzanine Financing for Real Estate Development
Mezzanine financing plays a key role in both commercial and residential development by bridging the gap between a senior development loan and the developer's available cash or equity. It enables developers to leverage additional funding with less of their own capital, allowing for more effective capital deployment and the ability to manage multiple projects simultaneously.

How It Works
Mezzanine loans sit behind the senior development loan in repayment priority and are typically secured by a second charge on the property. While this type of financing comes at a higher cost compared to senior loans, it allows developers to reduce the amount of equity they need to contribute upfront. This can be particularly beneficial for those looking to maximize the return on their capital.
At W1 Finance, we specialize in connecting experienced developers with leading mezzanine finance providers. Our deep industry expertise enables us to match borrowers with the most suitable lenders, helping to drive interest in your project and secure competitive financing.

Developer Criteria
Mezzanine lenders typically work with experienced developers, assessing past projects as part of their evaluation process. W1 Finance shares your project history with our network of lenders, helping to generate interest and providing tailored options. We can offer quick turnarounds for developers seeking capital, ensuring your project gets the funding it needs.
Flexible Funding Solutions
Mezzanine financing is a popular option for reducing the equity required when securing funding for commercial or residential property development. Our team works diligently to find the most flexible solutions, helping developers bring their projects to life.

Need More Information?
Get in touch with us to explore how mezzanine financing can support your next development project. We’ll guide you through the process and help you find the best solution for your needs.

Fast Response Time
We understand the importance of speed in the development process. That’s why we aim to respond to all inquiries within an hour, ensuring you remain agile and can act quickly.
Mezzanine Finance Criteria for Property Development
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Mezzanine financing should be economically viable within the project’s loan covenants.
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Suitable for both residential and commercial developments.
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The scheme should show a minimum profit of 20% on cost after finance.
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Profit on GDV must exceed 20%, with repayments calculated based on the initial loan.
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Loan to GDV ratios of up to 75%.
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Hybrid mezzanine and JV equity options are available for higher loan-to-value ratios.

