Mezzanine Funding – Bridging Loan

Mezzanine Funding – Bridging Loan

CapitalGroup was approached by a developer who was undertaking a private plan change which would see the zoning of a large land block on the periphery of Auckland change from rural to residential.

Following approval of the private plan change, the developer would complete the development of residential lots with a full presale take out from a major building company. The developer required funding to bridge a timing difference between when the purchase of the land would be completed, and when the private plan change would be approved at which time funding from a local trading bank would be readily available.

CapitalGroup assisted the developer to complete the land settlement via a highly leveraged structure provided by First Mortgage Trust and a mezzanine loan from CapitalGroup.

Capital Group invested funds for the following reasons:

  • 01

    The highly experienced development team with a strong track record of delivering projects.

  • 02

    Extensive legal advice in respect of the private plan change process.

  • 03

    Commitment from a trading bank to fund the development following approval of the private plan change.

  • 04

    Strong development proposition for the property following the private plan change approval including presales and engagement of a contractor.

Next case study
Funding Equity Co-Investment

Equity Co-Investment Residential Subdivision


CapitalGroup was approached to assist with the acquisition and development of a 10 hectare land holding in Orewa, on the North Shore of Auckland.