Customer Profile
Clients were experienced developers looking for assistance with funding a new development project they were starting.
Scenario
Clients already owned the land and had got planning for 10 residential units. They required us to fund the initial 5 units to get the development up and running and needed to fund the costs of the works. Once completed the development was going to be worth £4,250,000.
Brilliant Solution
We arranged for 100% of the cost of the works to be covered by the loan which came to over £1m including professional costs as well as costs of materials. These were available in staged drawdowns and provided the funding line required to get the development moving. There was also a contingency sum available to draw down if required.
Result
The deal structure not only provided the funds needed but as these were released in staged drawdowns this saved the client a lot of money on interest. Furthermore, this initial funding line allowed the client to keep a pot as contingency and gave them the confidence to get the first phase of their development completed.