BDM Case Update – John Waddicker

100% “JV” Development Facility with no profit share. Our Developer client had agreed a deal with a land owner where the payment for the land would be deferred until after the lender was redeemed. The lender was happy to cover 100% of all costs amounting to £1.4m to complete the scheme, and without a profit share. The developer only had to cover the necessary professional reports.

2% arrangement fee, interest at 1% per month, 1% exit fee.

Development Rescue deal. Undeterred by having had 2 lenders do a u-turn on him, a new client approached us following a recommendation by his solicitor. He had lost considerable time after his own efforts where fruitless, so time was up against us. Within 48 hours we produced credit backed terms for a £950k facility. With an existing valuation to be re-addressed, and the incoming lenders in-house QS being happy with the costings, completion was achieved within 3 weeks. 2% arrangement fee, interest at 0.99% per month, no exit fee.

Developer Exit. Client needed to refinance his existing development facility, but at high leverage and secured against some “executive” apartments. An 80% LTV gross facility on a 6 months term was arranged, with an option to extend or re-structure thereafter, dependent on sales activity at that point. Interest at 0.9% pcm.

Refurbishment Facility of £2.4m to convert a 1 bed flat to a 2 bed flat in Central London.  70% Loan to Value net on Day 1, then 100% of build costs at an Interest Rate of 0.72% per month, with interest roll-up. 1% Arrangement Fee, No exit fee. A tight 3 week completion deadline was adhered to.

Commercial Bridging Loan. We achieved 70% Loan to Value on a tenanted office building, which amounted to 73% of the purchase price. Our client intends to apply for planning consent to convert to residential to coincide with the end of the current tenants lease. Interest Rate at 0.99% per month, 2% Arrangement Fee