MEZZANINE FINANCE

1
MEZZANINE FINANCE

• PREFERRED EQUITY FOR PROPERTY DEVELOPERS

2
What is Mezzanine Finance

• Mezzanine Finance and Preferred Equity is a way
  to increase the property developers borrowing
  potential beyond the limitations of traditional
  construction finance facilities.
• Mezzanine finance is a form of subordinated debt
  behind senior debt in terms of ranking on any
  claim on property assets.

3
Diagrammatically Represented
4
Characteristics of Mezzanine Finance

• Medium Risk
• Appropriate for Private and public companies
• Applicable to Diverse Industry Sectors
• Long Term , fixed Rate Capital
• Flexible Transaction Structures

5
Benefits Of Mezzanine Finance

• It gives the developer the power to determine the
  level of equity (if any) they wish to contribute
  to a project.
• It is generally cheaper than equity and provides
  a higher rate of return on equity
• The borrower can use their equity elsewhere,
  effectively diversifying risk
• Mezzanine finance is passive provided the project
  is performing to expectations
• It can be raised relatively quickly as opposed to
  equity

6
For More Info

• Global capital Commercial maintains relationship
  with Mezzanine Lenders throughout Australia.
• If you would like to determine if Mezzanine
  financing is appropriate for your company or not,
  please visit us at
• Global Capital
  Commercial
• (Commercial Finance Broker In
  Australia )
• https//www.globalcapital.com.au/developmentfinanc
  e/mezzanine-finance-preferred-equity/
• Tel  [phone]
• Fax  [phone]
• Email
   info_at_globalcapital.com.au

7
(No Transcript)