Mezzanine Loans for Commercial Property Development

We thought that Mezzanine finance in the property industry had all but disappeared.  Two or Three years ago there were plenty of options with Mezzanine finance with lenders keen compete with each other.

Coupled with increasingly aggressive funding terms at ever lower margins,and senior debts pushing past 90% of the value there was not much room for Mezzanine type arrangements.

And then we saw this advert:

When you need something bigger take a look at our ”Jumbo” Mezzanine Loans for Commercial Property Investments.

  • Mezzanine Loans available from £5m to £50m
  • Up to 90% LTV
  • Interest rate from 15% per year
  • All asset classes considered, mainland UK only

Suitable for:

  • Second ranking behind existing or new senior loan
  • Partial pay down of existing senior loanRepair for breached LTV covenants
  • Interest only

Which would appear to suggest that Mezzanine funding is back!

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