MEZZANINE FUNDING - 279 LOT RESIDENTIAL SUBDIVISION
CapitalGroup was approached by a long term development partner to provide a mezzanine loan to a large subdivision in South Auckland. Key to this proposal was the long term relationship we have had with the developer and his proven performance over this time.
In addition, the sales risk had been mitigated by a significant amount of presales to excellent counterparties. The developer had minimised execution risk by gaining the appropriate development consents and establishing an acceptable construction contract prior to CapitalGroup funds being invested. An example of a classic mezzanine loan to a proven established developer accessing high leverage once he had reduced the up front development risk.