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:

  • 01

    The development team had the necessary skills and experience to deliver the project.

  • 02

    The high-quality apartment development in a desirable location.

  • 03

    A strong presale position being in place.

  • 04

    A construction contract with an experienced contractor.

  • 05

    The extensive geotechnical and engineering work undertaken by the developer.

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