MI has recognised that the demand for mezzanine or high yielding loans has increased significantly since the GFC due to lending from the major banks being restricted, which in turn has led to some good quality credit being available for private institutions at yields well above fixed term deposit rates.
The opportunities may be either first or second mortgage on either income yielding properties or development sites.
When considering mezzanine debt opportunities we do so within the following criteria:
• Minimum yield or IRR in excess of 15%pa.
• Loan size of between $0.5m - $10.0m
• A term of between 6 months to 2 years