New Launch - India Real Estate Report 2026.

What is Mezzanine Financing?

Mezzanine Financing is a hybrid form of funding that combines debt and equity financing for real estate projects and developments.

How Mezzanine Financing Works

  • Used between senior debt and equity investment
  • Provides additional capital for projects
  • Often carries higher interest rates
  • May include equity participation rights for lenders

Why Developers Use Mezzanine Financing

  • Helps bridge funding gaps in large projects
  • Reduces the need for additional equity capital
  • Supports project expansion and acquisitions
  • Offers flexible financing structures

Mezzanine financing is widely used in commercial real estate development because it provides additional capital while balancing debt and ownership requirements.

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