Mezzanine Finance
for Peterlee Developers

Structuring mezzanine alongside senior debt requires careful coordination. The mezzanine lender needs comfort that the senior facility terms are workable, while the senior lender needs assurance that the mezzanine won't interfere with their security position. We manage this process to ensure both parties are aligned before commitment.

Profit-share mezzanine structures are increasingly common for larger schemes, where the mezzanine provider takes a percentage of net development profit instead of, or in addition to, a fixed interest rate. This can reduce your cash cost of capital during the build phase, with the mezzanine return contingent on the scheme's success.

The decision to use mezzanine finance should be driven by a clear capital efficiency rationale. If you have sufficient equity for a single project but want to deploy across two or three schemes simultaneously, mezzanine can multiply your effective development capacity without requiring external equity partners.

Leeds has emerged as a financial services hub second only to London, driving commercial and residential development at scale. Sheffield's advanced manufacturing sector and Newcastle's digital corridor are creating employment-driven housing demand that supports new-build viability in locations that might not have worked a decade ago.