Mezzanine Top-Up - Bridging the GDV Gap
£1.4m mezzanine · senior to 75% LTGDV · 22-unit scheme. An experienced developer's senior lender capped at 58% LTGDV; Doulton sourced mezzanine to bridge the gap.
The Client
Experienced developer running multiple concurrent schemes
The Challenge
An experienced developer's senior lender would only go to 58% LTGDV on a 22-unit scheme. The developer needed to bridge to 75% LTGDV without tying up equity that was committed to two other concurrent schemes.
Our Solution
Doulton sourced a mezzanine lender to bridge the senior debt to 75% LTGDV, releasing £1.4m of additional capital. The mezzanine sat behind the senior lender on a structured intercreditor agreement. The mezzanine facility was scheduled to redeem ahead of the senior on sale proceeds.
The Outcome
Scheme completed and sold within programme. £1.4m additional capital allowed the developer to retain equity participation in two parallel schemes that would otherwise have required a partner buy-in. Net equity gain across all three schemes materially exceeded the cost of the mezzanine. Key highlights: 75% LTGDV achieved without partner buy-in; £1.4m additional capital released; Intercreditor structured for orderly senior + mezz redemption.
Related Services
The finance products behind a case like this one.
Related Guides
Plain-English explainers if you want to understand the options first.