Mezzanine debt and preference equity rank behind the senior bank and is subordinated to the bank’s position.

The facility incurs an interest cost, which is usually capitalised into the facility so as not to impact the developer's cash flows, and is usually not linked to the profitability of the project. However, if structured as a participating mortgage, it has both an interest and profit-share component.
Sometimes referred to as structured equity, its key attribute is that the repayment of capital occurs in advance of and in priority to the repayment of ordinary equity. There is no registered mortgage on equity.
To date, Dorado has provided 78 projects with mezzanine debt or preference equity finance for projects including apartments, townhouses, commercial, house and land, industrial, medical, retirement and subdivisions, in five Australian States and Territories.

Case Studies


Equity sits at the top of the capital stack for development finance.

Equity is repaid in line with all other ordinary equity after the repayment of any structured finance and first mortgage.

To date, Dorado has provided 9 projects, including apartments, townhouses, and house and land with equity finance across two Australian States.



To discuss subordinate finance funding for your next project, get in touch:

Funding Contact

Danielle Nicholas

Senior Manager - Property Finance

Funding Contact

Peter Packer

Co-Founding Director and Head of Capital