Vía Capital

Mezzanine Finance for Property Development

Mezzanine finance allows your developer clients to reduce their equity contribution on a project - improving returns without taking on more senior debt than the bank will provide. Vía Capital provides second-ranking finance behind bank senior facilities on residential and commercial development projects.

Product Parameters

Loan size
$1,000,000 - $20,000,000 (mezzanine tranche)
Maximum blended LVR
80% of GRV (first + second combined)
Loan term
6 - 24 months (aligned to construction timeline)
Security position
Second registered mortgage
Senior lender
Bank or APRA-regulated ADI only
Developer experience
Minimum 2 comparable completed projects
Borrower entity
Company or trust with corporate trustee
Geography
NSW, VIC, QLD

All parameters shown are indicative and based on standard scenarios. We may work outside these parameters depending on the strength of the deal. Contact us to discuss your specific scenario.

View full product parameters →

How it works

1

Senior facility in place

Your client has a bank construction or investment loan in place - or conditional approval for one. The bank has set their LVR (typically 60-65% of GRV). Vía Capital's mezzanine tranche fills the gap between the bank's maximum and your client's required funding level.

2

Mezzanine loan tops up to required level

With both senior and mezzanine facilities in place, your client's equity contribution is reduced. The blended LVR (bank + Vía Capital combined) goes up to 80% of GRV. The mezzanine interest is typically capitalised for the duration of the construction period.

3

Repaid on completion

On practical completion and as units sell, the facilities are repaid in order - senior lender first, then the mezzanine. Your client retains upside on improved sale prices.

Is this the right product for your client?

This suits:

  • •Experienced developers whose bank won't fund beyond 60-65% GRV
  • •Projects where equity is tied up elsewhere and a mezzanine tranche improves overall capital efficiency
  • •Developers who want to maintain their cash position across multiple projects simultaneously
  • •Equity gap funding: bank construction facility is at 65% of Total Development Cost and developer is short by $1-2m in equity
  • •Construction cost overrun: bank won't increase the construction facility and the project needs additional funds to reach completion
  • •Off-the-plan valuation shortfall: bank valuation came in below contract price and a short-term mezzanine tranche bridges the gap

This product is not suitable for:

  • •Second mortgage positions behind other private credit funds or non-bank lenders - we require a bank or ADI as the senior lender
  • •First-time developers without a track record of comparable completed projects
  • •Completed (standing) properties - if your client needs a second mortgage on a finished asset, see our Second Mortgage product instead

Frequently Asked Questions

Why won't you take a second mortgage behind other private lenders?
Second mortgage lending behind private lenders introduces enforcement risk and complexity that we're not comfortable with. If the senior lender enforces, our position can be materially compromised in ways that are harder to manage when the senior is a private fund rather than a bank. This is a hard limit for us.
How is mezzanine interest charged?
Mezzanine interest is typically capitalised during the construction period - meaning it accrues and is repaid with principal on exit, rather than being paid monthly. This preserves your client's cash for construction. Rates are available on application.
Do you coordinate directly with the senior bank?
Yes. We manage the inter-creditor arrangements with the senior lender and work within standard subordination deed frameworks. We're experienced dealing with the major banks' institutional and business banking divisions on mezzanine structures.
What's the difference between mezzanine finance and a second mortgage?
Mezzanine finance is specifically for active development projects - it sits behind a bank construction or investment facility and is repaid from the proceeds of the completed development. Our Second Mortgage product is for standing (completed) properties where a borrower needs to access equity without disturbing their existing bank loan.

Got a deal that needs a private lender?

Submit your scenario and we'll come back with an indicative position - loan amount, LVR, term - within 24 business hours. If it doesn't fit, we'll tell you that too.

Submit a Mezzanine Deal