Mezzanine Programme
Indicative terms within five business days. Drawdown within two to six weeks. No credit committees that take months. No minimum fund sizes that exclude smaller deals.
Loan Terms
The complete commercial framework. All terms are indicative and subject to credit assessment, independent valuation, and formal documentation.
| Loan Size | R3 million – R20 million |
|---|---|
| Term | 12 – 24 months |
| Base Rate | 24% – 28% per annum (no equity kicker) |
| Rate with Kicker | 19% – 22% per annum where equity participation is agreed |
| Security | Second registered bond + personal surety from borrower |
| Combined LTV | Maximum 80% (senior debt + mezzanine combined) |
| Asset Types | Industrial · convenience retail · mixed-use · selective office |
| Origination Fee | 1.5% – 2.0% of loan amount, payable on drawdown |
| Equity Kicker | Optional: 15% – 25% participation in equity uplift at exit above agreed base value |
| Execution | Indicative terms within 5 business days · drawdown 3 – 6 weeks from application |
Optional Structure
Where borrowers prefer reduced cash interest during the hold, we offer a structured equity participation right. Cash rate drops from 24–28% to 19–22%, in exchange for 15–25% of equity value above an agreed base at exit. Aligned incentives.
| Scenario | Asset Exit Value | Senior Debt | Equity Pool | Kicker (20%) |
|---|---|---|---|---|
Conservative |
R33.7m | R16m | R17.7m | R1.5m |
Base Case |
R38.2m | R16m | R22.2m | R3.2m |
Bull Case |
R42.4m | R16m | R26.4m | R5.1m |
Illustrative scenarios for an R10m mezzanine loan over a 2-year hold. Kicker income is received in addition to all contractual interest payments during the loan term.
Capital Structure
Mezzanine is not a last resort — it is a deliberate tool to amplify equity returns without diluting ownership. The same R25m industrial acquisition, structured three different ways.
| Item | All Equity | Senior Only | Senior + Mezz |
|---|---|---|---|
Purchase Price |
R25m | R25m | R25m |
Senior Debt (60% LTV) |
— | R15m | R15m |
Mezzanine (20% LTV) |
— | — | R5m |
Equity Required |
R25m | R10m | R5m |
Exit Equity (Base) |
R35m | R20m | R15m |
Exit MOIC |
1.40× | 2.00× | 3.00× |
Senior debt assumed at prime + 1.5% (≈11.75% p.a.), mezzanine at 26% p.a. Illustrative only.
Execution
Five steps from one-page summary to drawdown. We respond to every submission — with terms or a clear decline.
Send a one-page deal summary. No formal application required at this stage.
We respond with indicative terms or a clear decline within 5 business days. No cost, no commitment.
Independent valuation (at borrower's cost) and financial review. Typically 2–3 weeks.
Credit committee decision within 3 business days of receiving complete documentation.
Loan agreement and second bond registered. Drawdown on registration. 1–2 weeks from approval.
Intermediary Programme
We work alongside the South African intermediary community — not around it. Your client relationship is always protected.
1% of loan amount paid on drawdown to all registered intermediaries on successfully closed transactions.
One-page summary → indicative terms within 5 business days. No cost. No commitment from you or your client.
We never approach your client directly without your explicit permission. The relationship you brought is the one you keep.
Submit a Deal
Send a brief property and borrower overview to deals@toviacapital.com