Above senior debt
closes the funding gap
Preferred equity
or subordinated debt
Investors & JV partners
sourced by Agora
Development
property projects
Preferred equity and mezzanine capital
Agora has access to Investors and/or Joint Venture Partners who can provide Preferred Equity or Mezzanine Finance to assist property development opportunities. This is where there is a shortfall in funding provided by the senior debt or 1st mortgage lender and/or equity provided by the developer.
Mezzanine capital is usually provided as subordinated debt or a preferred equity instrument that represents a future claim on a company’s assets which is senior only to that of the common shares. Mezzanine financing is commonly used to bridge the gap between development cost and the senior debt and equity contributions from the development company.
Frequently asked questions
When is mezzanine finance used?
When there is a shortfall between the funding provided by the senior debt (1st mortgage) lender and the equity the developer is contributing.
How is mezzanine capital structured?
Usually as subordinated debt or a preferred equity instrument — a claim on the company’s assets that ranks senior only to common shares.
Who provides the capital?
Agora’s network of investors and joint venture partners.
Get an indication on your deal
Send us the basics and we’ll come back with likely terms — usually within 24 hours.
Or call +61 411 617 772
QUICK ENQUIRY
Get an indication on your deal
Send us the basics and we’ll come back with likely terms — usually within 24 hours.
Have a deal that needs funding? Let’s structure it.
Or call +61 411 617 772