The Story
The loan was to facilitate the development of 25 luxury flats situated in a picturesque Kentish village, renowned for its charming landscapes and rich history. Our experienced client, a seasoned developer with a proven track record in the real estate market, was strategically looking for the maximum gearing possible for this venture. This approach was essential as they were concurrently managing four other sites that were already under construction, each presenting its own set of challenges and opportunities.
The Figures
Loan £4.17m senior debt and £200k mezzanine finance
LTGDV 70%
GDV £6.4m
Rate 11.5% senior debt and 18% mezzanine debt
The Challenges
We needed a quick process to capitalize on a unique opportunity, as our client had secured the land for £250,000 below market vale from a developer keen on a very quick sale. Given the potential profit, and vendors urgency, swift action was crucial to finalise the acquisition and start development.
The site also had challenges, notably the presence of Japanese Knotweed, an invasive plant that complicates construction and adds complexity to financing due to its potential for structural damage.
The Solution
Our comprehensive knowledge of diverse lenders, ranging from traditional banks to alternative sources, enabled us to negotiate optimal terms while prioritising speed and address the site's inherent challenges. By distilling complex situations into clear insights, we are able to facilitate streamlined decision-making and cultivate long-term, trust-based relationships with all key stakeholders, whether they are clients or lenders.
Comments