£22.3m Development Finance facility at 70% LTGDV

Deal Structure

£22.3m facility (gross, including interest & Arrangement Fee)

70% LTGDV & 90% Loan to Cost

2% Arrangement Fee

Interest Rate 9.25% per annum

1.25% Exit Fee (based on the facility amount)

25 months term

Deal Summary

Our experienced developer client had purchased the property in Berkshire which had planning consent to convert to 191 residential units. The client was sufficiently experienced in commercial to residential conversions and as such we were able to access some stretched senior debt options to refinance the existing debt and then provide 100% of the costs to complete the works.

After identifying the most appropriate funding option, formal terms were issued, and the relevant professionals instructed. The property was in a fantastic location and demand was expected to be healthy. A nominated sales agent had begun pre-selling to a very significant level of interest from a range of potential owner-occupiers and investors.

Our client was ready to deploy his team and works began immediately. The build programme is anticipated to take no more than 18 months, by which time the majority of the units are anticipated to be pre-sold.