Access higher leverage while preserving your equity
Unlock higher leverage for your property development projects with mezzanine finance. Alpha1 Financial Solutions structures tailored funding that bridges the gap between senior debt and developer equity, so you can preserve ownership, accelerate timelines, and scale your portfolio with confidence.
Mezzanine Finance
Mezzanine finance is a funding solution that sits between senior debt and developer equity. It gives property developers in Australia access to higher leverage without giving up ownership. Typically secured by a second mortgage, mezzanine finance helps bridge funding gaps, reduce the equity required, and keep projects moving forward.
Higher Leverage Potential
Boost borrowing capacity often up to 85–90% of project costs.
Preserve equity ownership
Reduce the personal equity required while maintaining full control of your project.
Fast, flexible access to capital
Quicker to arrange than raising equity, allowing projects to proceed without delay.
Structured for your project
Facilities tailored to align with senior debt, timelines, and cash flow needs.
When to use
Mezzanine finance is best suited for shovel-ready projects where senior debt alone doesn’t cover the total cost. It provides developers with the flexibility to recycle equity, manage cash flow, and accelerate new opportunities.
Mezzanine finance is designed for experienced borrowers who need capital beyond what banks are willing to provide. It’s most commonly used by:
Our mezzanine finance solutions are designed to complement senior debt and protect developer equity. With strong lender relationships and structuring expertise, we help property developers, businesses, and companies secure tailored funding for complex projects.
We negotiate terms that integrate seamlessly with your primary loan.
Our network of lenders provides flexible funding options nationwide.
From feasibility through to settlement and repayment, we guide you at every stage.
Mezzanine finance differs from equity financing because it allows you to secure funding without giving up significant equity in your business. Unlike equity financing, it is structured as debt that converts to equity only if repayment conditions are not met.
Senior debt is cheapest but limited by lower loan-to-value ratios. Equity is the most expensive and dilutes ownership. Mezzanine finance provides a middle ground – higher leverage without giving up control.
No. While it’s widely used in property development, mezzanine finance also suits businesses and companies looking to fund growth, acquisitions, or management buyouts without diluting equity.
Mezzanine finance is versatile and can be used for various purposes, including property development, business expansion, acquisitions, and refinancing, as long as the lender approves the use case.
Lenders generally offer mezzanine finance with an LVR of 70-85%, depending on the project type, the borrower’s profile, and the value of any senior debt in place.
