Senior and equity debt arranged for the build of 8 houses in the south west

Deal Structure

Senior debt

80% loan to cost

Interest rate – 1% per month

Arrangement Fee – 1%

Exit fee – 1%

15 month term

Equity debt

20% loan to cost

50/50 split of profit

15 month term

Deal Summary

Our client is an experienced operator, albeit he had reverted to contracting as a result of financial problems as a developer in the last recession.

He brought to the table a good scheme, with a healthy profit margin, but no cash.

We needed to find lenders who would take a commercial view based on meeting the client, looking as some previous schemes they developed and more recent contracting schemes they’d undertaken for clients. Such lenders were sourced and a 100% finance deal was offered within days  using debt and equity.