£2.25m Bristol Development Finance. Senior Debt & Mezzanine Finance.
THE BRIEF: OBJECTIVES/PROBLEMS/CHALLENGES:
Our client required development finance on a site in Bristol with minimal initial cash input to enable them to convert an existing public building into 6 bespoke, high-end, residential apartments in Bristol.
The funds needed to be in place within a few months to meet an exchange deadline.
The call was taken late on a Friday evening and we worked over the weekend with the client and the senior debt lender to agree terms. The mezzanine funder was briefed the following Monday and we had terms in place for total funding within a week.
Fox Davidson oversaw the application process including completion of the lenders application forms. We worked with the client to produce a full development package for the lender to give them the confidence to lend to our clients and to demonstrate that the development was financially sound and could be completed on time.
Over several months we liaised with the client, the lenders, the various surveyors and the lawyers to bring about the drawdown of funds.
By approaching the right development finance lender, first time, within hours of taking the enquiry we quickly secured terms and gained the confidence of our client to partner with them on the development.
The total advance including over 60% of the purchase price, 100% of the build costs, professional fees and rolled up interest from the senior debt lender produced an initial loan to cost of 76%. Including the mezzanine finance would take the total loan to value to 67% of the gross development value (GDV).
IN OUR OWN WORDS:
This transaction only happened because of our established contacts with the right development lenders and because we were able to work quickly and over the course of a weekend to ensure we secured the finance required and the trust of our client.
The work involved took up several months of hard work to secure the funding and to overcome various obstacles including both professional valuations and legal issues. The relationship we have built with our client will see us working together on future development projects.
Learn more about how Fox Davidson can help you secure funding for your next development on our property development finance page.