100% & Mezzanine Finance
Maximise your development opportunities with up to 100% project funding.
For many property transactions — particularly development projects — the gap between what a senior lender will provide and the total funding requirement can be substantial. Mezzanine finance fills this gap, providing subordinated debt that sits between senior debt and equity in the capital structure.
Aberdeen Corporate Finance has extensive experience in structuring layered funding packages that combine senior debt with mezzanine finance, enabling developers and investors to maximise leverage and deploy their equity more efficiently across multiple projects.
Understanding the Capital Stack
Senior Debt
50–70%First charge lending from banks and specialist lenders. Lowest cost of capital, first in priority for repayment.
Mezzanine Finance
15–30%Second charge subordinated debt. Higher cost than senior debt but lower than equity. Fills the gap between senior debt and borrower equity.
Borrower Equity
5–20%The borrower's own capital contribution. Reduced significantly when mezzanine is introduced into the structure.
Key Features
Subordinated Debt
Mezzanine finance sits behind the senior lender in the capital structure, taking a second charge on the property. This additional layer of funding bridges the gap between the senior debt ceiling and your total capital requirement, reducing or eliminating the need for equity.
Up to 100% of Costs
By combining senior debt (typically 60–70% LTV) with mezzanine finance, total leverage can reach 80–95% of project costs — and in exceptional cases, 100% where the borrower has a strong track record and the project fundamentals are compelling.
Reduced Equity Requirement
Mezzanine finance allows developers and investors to deploy less of their own capital per project, freeing equity for other opportunities and enabling a larger portfolio of concurrent investments.
Flexible Repayment Structures
Interest on mezzanine finance is typically rolled up (added to the loan balance) rather than serviced monthly, reducing the cash flow burden during the project lifecycle. Repayment is usually made from the project proceeds alongside or after the senior debt.
Development & Investment
Mezzanine facilities are available for both development projects (ground-up, conversion, refurbishment) and investment acquisitions. The structure is tailored to the specific risk profile and cash flow characteristics of each transaction.
Intercreditor Arrangements
We manage the intercreditor relationship between the senior lender and the mezzanine provider, ensuring the legal documentation, priority of payments, and enforcement rights are clearly defined and commercially workable.
When Is Mezzanine Finance Appropriate?
Important Notice: Aberdeen Corporate Finance Limited acts as a commercial finance broker and introducer. Mezzanine finance carries higher costs than senior debt and increases the overall leverage of a project. All facilities are subject to status, valuation, and lender criteria. Your property may be at risk. Aberdeen Corporate Finance Limited is not regulated by the FCA.
Need Mezzanine Finance?
Contact us to discuss how mezzanine funding can maximise your project leverage and returns.
Discuss Your Project