CORESTATE Mezzanine
Equity substitute financing for project developers (new construction, refurbishment and allocation business)
The real estate business, which is heavily undercapitalised, used to be almost entirely financed by borrowed capital. Due to regulatory requirements and as a result of the financial crises, banks have become much more cautious when granting loans for Project Developments. Even in the case of interesting projects in attractive locations with an appropriate level of advance sales, first-ranking financiers often only provide up to 70% of debt capital.
Timely access to 20 – 30% equity capital is extremely difficult, especially for medium-sized or local initiators, even for attractive projects. Experienced mezzanine takers usually have more interesting projects in their pipeline than they can implement with their own financial resources.
The developer is able to implement more projects through the injection of a lack of equity capital.
Your contact
HFS Helvetic Financial Services AG, a CORESTATE Capital Group company, is one of the leading providers of mezzanine financing in the German residential and commercial real estate market and acts as advisor to numerous funds.
HFS AG was one of the first companies to discover the great potential of mezzanine financing. Since the initiation of the first fund in 2009, HFS AG has established itself as the market leader in this segment.
