Mezzanine Funding – Residential Apartments
Mezzanine Funding – Residential Apartments
CapitalGroup provided mezzanine finance for the development of 50 luxury apartments to be completed in three stages at a waterfront location in Wanaka.
The developer had a strong equity position and CapitalGroup worked closely with the developer and a local trading bank to put a structure in place that funded the first two stages of the development.
CapitalGroup assisted with a mezzanine loan as part of this structure to provide a highly leverage transaction. As the project progressed, CapitalGroup assisted with a restructure of the funding to allow the final stage to be completed.
Capital Group invested funds for the following reasons:
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01
The development team had the necessary skills and experience to deliver the project.
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02
The high-quality apartment development in a desirable location.
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03
A strong presale position being in place.
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04
A construction contract with an experienced contractor.
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05
The extensive geotechnical and engineering work undertaken by the developer.
