What are the project requirements for mezzanine capital matching with Mezzalite?
1. The project must be a real estate project.
2. There must be a mezzanine capital requirement of at least €500,000.
3. Complete and properly prepared project documents must be available.
4. The project must be based on a realistic project costing.
If you need assistance with the preparation of the project documents, please contact us at email@example.com.
How does capital matching via Mezzalite work for capital seekers?
1. You create your real estate project in your protected area in the Mezzalite web app and upload the key project data and documents.
2. Your project will only be sent to suitable investors on Mezzalite. You create the documents only once, which means you can reach a large number of potential capital providers at the same time.
3. Once the 14-day offer submission period has ended, you will be able to view all the offers you have received. You can then take your time to compare them and choose the best offer for you.
4. After that, you get in touch with the investor and the due diligence is carried out. Once due diligence has been completed with a positive result, there is normally nothing standing in the way of an investment.
Will my project be made available for the general public to view?
No, your real estate project will not be publicly viewable. Your project will only be sent to investors whose investment profile matches your project.
How secure are my project data?
Protecting your data is extremely important to us. We are constantly shocked at how carelessly some intermediaries handle project data or use applications that do not comply with the GDPR. With Mezzalite, your data will be encrypted and managed on servers with the highest security standards, within the EU.
What are the costs for me as a capital seeker?
For a successful referral of your project to a suitable mezzanine capital provider, a commission of 2% of the capital raised will be charged. If no suitable mezzanine capital providers can be found, there will of course be no charge.
What documents do I need to prepare?
1. Key project details
- Financing requirements in terms of the amount and term, the total investment costs and the equity raised
- Asset class and location of the project
2. Project teaser
The teaser is a concise project description that provides information about the project and enables investors to get a picture of it. It usually contains all the relevant information about the project, such as location, size, infrastructure, description of the project, etc., as well as pictures of the current situation and visualisations of the plans.
3. Financial plan
In addition to the project costing, information regarding purchase, construction and ancillary costs as well as expected sales prices, the financial plan also includes a presentation of the financing structure and a cash flow plan.
4. Structural description with organigram
The structural description should show the company structure, including shareholders and affiliates. It should clearly show who the project owner is, what its shareholder structure looks like and where financing exists or is to be provided.
5. Optional documents
The following documents are optional. You can upload them if you wish. They are not mandatory for an indicative offer, but they do make it easier for investors to assess the project:
- Expert opinions and assessments
- Planning permission
- Land register extract
If you need assistance with the preparation of the project documents, please contact us at firstname.lastname@example.org
How can I increase my chances of a successful capital match?
The first and most important step is to make contact with the right investor – Mezzalite takes care of this for you. Well-prepared and complete project documents are the next thing you require, and are also crucial. These should be informative, but not too extensive. The investor must be able to get a good overview of your project quickly.
A realistic project costing is also a key element in the process. A suitable construction cost reserve of 10–15% and realistic sales prices are crucial here.
Project developers with a track record of successfully completing projects have a much easier time gaining the trust of investors.
What is the most common reason for failure to achieve a mezzanine capital match?
Generally speaking, the most common reasons are that capital seekers approach the wrong investors or investors who are not suitable, or that they provide poor-quality documentation or insufficiently informative documentation. Mezzalite solves both of these problems by only matching projects with suitable investors and by requesting complete project documentation from the start.
It is also common for investors to turn down many financing requests because the business plans or costings are not realistic.
Once I have found a suitable investment offer, what happens next?
You will get in touch with the investor directly and then provide them with further documentation so that they can carry out their due diligence. If the result of the due diligence is positive, there is usually nothing standing in the way of an investment.
In the future, it will be possible to carry out due diligence on Mezzalite as well. Mezzalite will provide a secure data room, allowing you and your new business partner to exchange documents directly.
Do you also provide mezzanine capital matching for companies?
No, currently we only provide mezzanine capital matching for real estate projects.
However, if you are looking for mezzanine financing for your company, we would still like for you to get in touch with us. We have an extensive partner network that we can use to help you.