Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 minutes to learn more.
Our company
Shojin is an FCA-regulated fractional investing platform enabling global investors to build their wealth from UK-based real estate investment opportunities.

Invest - Products - Mezzanine

Fund up to 90% of project costs.

Top up funding that allows you to minimise your contribution, enhancing your return on capital whilst maintaining full control.

What is a Mezzanine loan?

Shortfall funding.

Mezzanine loans are used in conjunction with senior debt to reduce the equity requirement for developments and strategic acquisitions.

This type of lending relies on Loan to Gross Development Value (“LTGDV”) and Loan to Cost (“LTC”) caps, and generally attracts a higher, fixed interest rate than bridge or senior development finance.


How does a Mezzanine loan work?

Subordinated debt.

Mezzanine loans reduce the overall equity requirement by topping up the capital stack and adding an additional layer of debt below senior debt. This type of finance allows you to retain the control of the SPV and benefit from any upside.


They are subordinated in priority and rights to the senior lender and require a second legal charge. We structure our mezzanine loans so that they are either fully drawn on day one or periodically drawn over the lifecycle of the investment.


Being second in line within the capital stack, they are paid off after senior debt but before borrower equity and profit.

cloud-light 2
Apply for funding
Our team of experts will review your proposal and present it to our credit committee. If it meets our funding criteria, we will submit an indicative offer letter. Upon acceptance and payment of the commitment fee, we will undertake due diligence, instruct a valuer and project monitoring surveyor as well as engage with solicitors.
desktop-light 2
Draw down
Upon receipt of all the required reports and completing all internal checks, legal documents will be signed and funds released within 5 business days.
buildings-light 2
Once the scheme concludes, the loan will be repaid through an agreed exit strategy which can include unit sales or refinancing.


If you would like to find out more about our flexible funding solutions, please get in touch with a member of the team. 

What is the minimum/maximum ticket size? caret-down-light
We provide between £1,500,000 - £6,000,000 per transaction.
What are your mezzanine product parameters? caret-down-light
We fund up the lower of 90% LTC or 75% LTGDV, including interest roll up.
Do you take any security? caret-down-light
As standard, we require a second legal charge, debenture over the borrowing entity and personal guarantee. We will take additional security on a case by case basis and would prefer to mitigate risk as opposed to maximise returns.
What type of opportunities do you fund? caret-down-light
Although we specialise in development finance, we fund an array of opportunities, including acquisition, refurbishment, ground up development, income stabilisation and releasing equity from an existing asset/portfolio. We mainly fund residential-led use classes that are located in major towns and cities across the UK.
What are your typical terms? caret-down-light
Our typical terms last between 6 - 24 months.

Go further with Shojin

More opportunity
No management fees. Smaller sums to take part. Lowered barriers for access.
Shared risk
Shojin puts own funds into projects. We share in the risk and rewards together
We use our thorough due diligence and expertise to ensure the best outcome – and you’re not left out the loop.
You get paid out before we do. You’re more likely to gain higher returns than traditional, inflexible investing routes.