Residential Development Loan with Mezzanine Finance
We were approached by a seasoned London-based developer who was very open about the fact he had a loan offer from a lender he’d worked with on a previous site, and wanted to get a market comparison for his new development of 24 apartments on a brownfield site in East London. Having assessed the proposal, it became clear that we were able to make significant cost savings as well as reducing his capital requirement with another trusted lender.
We were able to source a senior development loan facility at 70% of the £8.6m GDV. In addition to this, a mezzanine (2nd charge) finance facility of £305,000 was arranged, enabling our client to maintain a healthy cash-flow position for the duration of the 21 month term.
Both the senior and mezzanine lenders were flexible in accepting a re-addressed valuation report which our client had obtained via his previous lender, saving time and expense.