Replacement or overhaul of a building component, for example windows or items of plant such as replacing the heating boiler to ensure that an agreed standard of service is economically achieved.

Management buy-out
A form of acquisition when the managers and/or executives of an entity purchase controlling interest in the entity from existing shareholders, feeling that it has the expertise to grow the business better if it controls the ownership.

Management commentary
A narrative report accompanying financial statements prepared in accordance with IFRSs that provides users with historical and prospective commentary on the entity’s financial position, financial performance and cash flows, and a basis for understanding management’s objectives and its strategies for achieving those objectives.

Management contract
An agreement in which a hospitality management company not only offers a licence for the use of its brand name and reservation system but also takes full responsibility for the day-to-day management of the hotel as agent for the owner of the asset.

Market condition
A condition upon which the exercise price, vesting or exercisability of an equity instrument is related to the market price of the entity’s equity instruments.

The aggregation or volume of the components of the building(s), and their relationships to each other.

Maturity date
The date on which the par value of the bond or note becomes due.

Mechanical and electrical. Usually refers to building services.

Mechanical feasibility
Mechanical studies are those which a client commissions in a feasibility study because it is required by a third party, for example in support of the application for funds, and this is the most common circumstance in which a mechanical study is prepared. Bankers, certainly, are less willing to lend on projects unless such appraisals have been well organized and have been carried out by independent professional organizations.

Mortgage lien
The unpaid balance in the mortgage loan and a legal claim against a mortgage property, which must be paid when the property is sold.

Mezzanine loan
An additional loan which increases total debt financing from (say) 60 per cent of value to 80 per cent of value.