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 of 1st Mortgagee Lender and/or Equity provide by the developer
Mezzanine Capital is usually provided as a subordinated debt or 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 are common to bridge the gap between development cost versus the senior debt and equity contributions from the development company.