Mezzanine Finance and Preferred Equity

For many developers, the biggest constraint to growth is not opportunity. It’s equity.

Whether you’re developing residential apartments, townhouses, industrial projects, mixed-use developments or large-scale commercial assets, access to the right capital structure can dramatically increase project returns and accelerate growth.

Through access to multiple and diverse pools of internal and external capital, we can accommodate funding requirements across the entire capital stack, providing tailored funding solutions for projects with varying risk profiles, capital structures and funding objectives.

Global Capital provides Mezzanine Finance, Preferred Equity and structured capital solutions that help developers bridge funding gaps, reduce equity requirements and maximise project capacity.

Our competitive advantage lies in our industry knowledge, capability and flexibility to provide a single source of capital to meet the unique requirements of each project.

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Discover how a tailored capital structure can help you preserve equity, fund larger projects and improve development returns.

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Most senior lenders require developers to contribute substantial equity, which can limit project size, reduce return on equity and restrict future opportunities.

Mezzanine Finance for Property Development fills the funding gap between senior debt and developer equity.

This additional layer of capital allows developers to:

For experienced developers, Property Development Mezzanine Finance can be a highly effective tool for increasing profitability while retaining ownership and decision-making authority.

In most scenarios:

Mezzanine funding effectively bridges the gap between the amount a senior lender is prepared to provide and the total funding required to complete a project.

This additional capital can allow developers to undertake projects that would otherwise require significantly larger equity contributions.

Unlike traditional mezzanine structures, Preferred Equity often does not require a second mortgage position.

Preferred Equity can provide:

For many developers, Preferred Equity forms an important part of an optimally structured capital stack.

Illustration: Understanding Project Risk Across The Capital Stack

and how risk and return typically increase across the project capital structure.

The more important metric is often the return generated on invested equity.

Well-structured Mezzanine Loans can allow developers to:

Increase Return on Equity

Deploy less equity while maintaining project profitability.

Preserve Capital

Retain capital for future acquisitions and development opportunities.

Deliver More Projects

Fund multiple projects simultaneously rather than allocating capital to a single development.

Maintain Control

Avoid introducing joint venture partners and retain decision-making authority.

Accelerate Growth

Expand project pipeline and scale operations more efficiently.

Improve Capital Efficiency

Create a funding structure calibrated to the individual requirements of the project.

Every transaction is assessed based on its merits, development strategy, team capability and overall project strength.

Global Capital can provide access to funding solutions across the entire capital stack, including:

Senior Debt

Traditional development and construction facilities.

Stretched Senior Facilities

Higher leverage solutions designed to reduce developer equity requirements.

Mezzanine Finance

Funding positioned between senior debt and developer equity.

Preferred Equity

Additional capital without traditional debt structures.

Structured Finance Solutions

Tailored capital solutions for more complex projects.

Private Capital

Flexible funding for projects that may fall outside traditional lending parameters.

This allows developers to access a single, coordinated funding solution aligned with project objectives.