Mezzanine Finance and Equity
We have a thorough understanding of the market for mezzanine finance and of how it can be used by a developer or investor to enhance return on capital. Such funds can be provided either by the lending bank “stretching” the senior debt, or by a third party supplier. We can secure a total lend of up to (but not limited to) 75% of GDV as a combination of senior and mezz or for smaller developments to £5m lending, this can all be secured as senior through a semi-exclusive funding line. Equity is available from both institutional and private sources to help developers increase the scale of their activities and diversify risk.
MOST POPULAR SCHEMES
London, SE, S.Mids & E.Anglia Development Funding
Lending to 60% of land value plus 60% build costs (to include related professional fees)
2% lender fee, 8-10% annual, 2% exit
Lending £500k to £5m
Flatted schemes (up to 50 units - location dependent) and houses acceptable.
Pre-let mixed commercial by way of exception
Mezz partners available
London Development Funding
Lending from £1m to £6m
Maximum 60% of GDV (no specified limit on Loan to Cost)
Favourable London postcodes only
Experienced developers
Pricing typically 1% arrangement fee, 7% all in rate, 1-1.5% of GDV on exit
We are able to bring a mezz partner in to 90% LTC ie 10% client equity investment
London, SE, S.Mids & E.Anglia Development Funding
Lending to 60% of land value plus 60% build costs (to include related professional fees)
2% lender fee, 8-10% annual, 2% exit
Lending £500k to £5m
Flatted schemes (up to 50 units - location dependent) and houses acceptable.
Pre-let mixed commercial by way of exception
Mezz partners available
London Development Funding
Lending from £1m to £6m
Maximum 60% of GDV (no specified limit on Loan to Cost)
Favourable London postcodes only
Experienced developers
Pricing typically 1% arrangement fee, 7% all in rate, 1-1.5% of GDV on exit
We are able to bring a mezz partner in to 90% LTC ie 10% client equity investment
London Prime Development Funding
To 75% Loan to Cost (subject to 60% GDV)
Minimum GDV £5m
Large (prime) apartment and housing schemes
Experienced successful developers only (15yrs minimum trading) with proven track record
Margin from 4% over cost of funds
We are able to bring a mezz partner in to 90% LTC ie 10% client equity
To 75% Loan to Cost (subject to 60% GDV)
Minimum GDV £5m
Large (prime) apartment and housing schemes
Experienced successful developers only (15yrs minimum trading) with proven track record
Margin from 4% over cost of funds
We are able to bring a mezz partner in to 90% LTC ie 10% client equity
Investment Development Funding London Apartments - 14 units
Rate from 1% per month
Lending from £500,000 to £20,000,000
Experienced developers with a proven track record in residential development (no commercial element permitted)
Prime London locations, with detailed planning permission already in place for up to 14 units
The project must show a minimum return on cost of 25%
First or Second charge funding
Developer investing a minimum of 20% of the development costs
Experienced Developer Finance
To 66% of land cost or value plus 50% of development cost
Lending facility of £500,000 to £3,000,000
Speculative residential units (subject to anticipated demand)
Strong developer CV and project team
Pricing of 1.5% fee with margin of 3.5% above BBR
Rate from 1% per month
Lending from £500,000 to £20,000,000
Experienced developers with a proven track record in residential development (no commercial element permitted)
Prime London locations, with detailed planning permission already in place for up to 14 units
The project must show a minimum return on cost of 25%
First or Second charge funding
Developer investing a minimum of 20% of the development costs
Experienced Developer Finance
To 66% of land cost or value plus 50% of development cost
Lending facility of £500,000 to £3,000,000
Speculative residential units (subject to anticipated demand)
Strong developer CV and project team
Pricing of 1.5% fee with margin of 3.5% above BBR
Development Funding
To 65% of GDV (100% build, costs & interest with balance towards land)
Bespoke rate of 1% per month, 1% acceptance fee but no fee on exit for prime locations
Experienced developers or novice developers with an experienced contractor in place
Lending to £5,000,000
12mth facility
Houses and by exception flats/apartments
Maximum of 14 units
Residential Development Funding (no pre-sales)
Strong Asset & Liability statement, Income & Expenditure assesment and Developer CV
Senior debt to 55% GDV
Mezzanine partner to 70% GDV
Funding to £7m
Flat rate charged, no profit share scenario
To 65% of GDV (100% build, costs & interest with balance towards land)
Bespoke rate of 1% per month, 1% acceptance fee but no fee on exit for prime locations
Experienced developers or novice developers with an experienced contractor in place
Lending to £5,000,000
12mth facility
Houses and by exception flats/apartments
Maximum of 14 units
Residential Development Funding (no pre-sales)
Strong Asset & Liability statement, Income & Expenditure assesment and Developer CV
Senior debt to 55% GDV
Mezzanine partner to 70% GDV
Funding to £7m
Flat rate charged, no profit share scenario
Speculative Development Land Finance (Planning Play)
High net worth individuals
Lending typically up to £10m
Rates from LIBOR + 3.5%
Prime city centre locations & South-East England with a strong CV or appropriate background
60% Loan to Cost
Development funds also available
No pre-requisite for pre-sales on residential units including apartment blocks
Mezzanine funding to 85% for commercial security
Up to £20m
Rates determined by quality of proposition
Loans up to 85% of value
Commercial investment and development funding
High net worth individuals
Lending typically up to £10m
Rates from LIBOR + 3.5%
Prime city centre locations & South-East England with a strong CV or appropriate background
60% Loan to Cost
Development funds also available
No pre-requisite for pre-sales on residential units including apartment blocks
Mezzanine funding to 85% for commercial security
Up to £20m
Rates determined by quality of proposition
Loans up to 85% of value
Commercial investment and development funding
Speculative residential/mixed use development finance
Up to £500,000
Rates of 1.65% per month
Lending to 65% GDV
No proof of exit
No pre-let/pre-sold requirement and suitable for first time developers (no requirement for joint venture)
Up to £500,000
Rates of 1.65% per month
Lending to 65% GDV
No proof of exit
No pre-let/pre-sold requirement and suitable for first time developers (no requirement for joint venture)
If you wish to discuss your UK DEVELOPMENT NEEDS please contact our Commercial Desk and discuss your options by simply CLICKING HERE
