Development Finance
We assist both Large & Small Ground up Developers to deliver the necessary capital raise they require, whether it’s for the acquisition of land/property or solely to build out the scheme.
We cover a wide geographical area, currently:
UK, Eire, Western Europe & US
Our Company
Development Finance is never straight forward and often has a number of issues to overcome, such as:
– A Lack of ‘Cash’ Deposit
While it’s possible to get offered a certain level of Senior Debt, Loan to Value (LTV) typically around 65%, this may not be sufficient
to enable some Developers to progress.
In these situations, Mezzanine Finance can top this up but may still leave a smaller shortfall.
To bridge that gap further, we engage Private Lenders who are made up of Institutions, Wealth Funds, Family Offices and HNWIs.
Their participation is on a Profit Share Basis.
We also offer Corporate Advice to FD and more established Developers where their liquidity is reduced.
The reason for this is that there are a number of projects being constructed simultaneously but they still wish to pursue other ventures.
Here, we can offer a variety of JV Funding solutions.
– A Lack of Experience
Mainstream lenders often want to see a good CV and a record of completed projects.
We’re often approached by Contractors that have experience in Construction but wish to take the next step by becoming Developers themselves, but cannot point to projects that were completed under their own name.
‘Starter’ Developers without a proven track record can overcome lack of experience by employing Contractors that have.
– Status of Planning
Lending issues that occur here are normally surrounding timing. Some Developers prefer a ‘without planning’ strategy in order to gain from the uplift when it’s granted. However, most Lenders prefer to wait until planning is granted. We have a few initiatives that can assist to reduce the risk involved in these circumstances.
For Answers to your Questions see below on our FAQs
Difficulty in getting higher LTV loan offers?
Want to take on more projects?
Looking to get funding for those larger deals?
Are you looking for Funding in Europe / Overseas?
Initiatives to assist Developers?
Developers can often have issues with: Granting of Planning Permission, Secring sales/ Exit Strategy, etc.
but our initiatives can overcome these, that include:
• Working Capital • Logistics • Land Promotion • Hospitality & Hotels Fund • Below Market Value (BMV)
• Residential Investment Fund • Across-sector funding • Across Continent Investment
Book a free consultation now!
Our services
We offer a wide cross section of Development opportunities which cover many sectors which we have split in sections as follows.
This covers all of the UK, North and Western Europe and the US.
Residential Development
Residential property schemes can be very profitable but can also be very risky, so it’s crucial that an…
Build to Rent (PRS)
Build to Rent (BtR) or Private Rented Sector (PRS) have recently become a hot topic as uncertainty…
Social / Affordable Housing
Projects relating to: Affordable Housing, Social Rent or Shared Ownership…
Care Homes / Nursery Homes
For the Operator or Investor, the following funding is possible: Senior…
Retirement Living
We have seen a huge increase in interest in this ever-growing market, especially where Care facilities…
Hotel Development
Funding is available in the following circumstances: New Build out of the ground, Refurbishment…
Student Accommodation
When it comes to Student Accommodation opportunities, one of the key considerations is timing…
Office / Commercial Repositioning
Residential property values have risen sharply over the past few…
Logistics / Warehousing
Due to the rise in Online Marketing & Sales Growth, this sector has become much higher profile…
Book a free consultation now!
In order to access development projects, please kindly contact us, so that we can send the appropriate forms:
1. A general Overview – Location, Site info/plans, PP status
2. A full Appraisal – to substantiate financials:
eg: GDV, Build Costs, Works Schedule, Timeline, Other Expenses, etc.
It would be helpful to submit the following:
• A CV / past experience of recently completed projects that are similar in size/capital required.
• Planning Permission (where applicable).
• The amount of cash input that is available that can be contributed (by Developer/Borrower).
FAQ - FREQUENTLY ASKED QUESTIONS:
Do I need Experience?
Not necessarily but it helps.
Do I need Capital?
No, 100% funding can be arranged on a profit share basis.
We have a number of loan products that will be attractive to larger Developers where there is a bigger Capital Raise requirement, both here in the UK, Western Europe and US.
What is it going to cost me?
The cost of the money depends on experience and capital introduced.
The range of interest costs are 3.5% to 12%.
With a ‘typical’ band width varying from 6-9% depending on the project and experience.
Do I need to put up any Security?
Not usually.
However, if you have security but no capital, the additional security can be taken to provide 100% funding with no profit share.
How long can I borrow money for?
Usually 24 months is the maximum.
Do you have Investors to help me?
We do have equity investors that will input capital for a share of the profits.
Can I do the Build-out with my mates?
Most lenders prefer to have a contractor appointed.
Is a CV necessary?
Yes and most importantly, it should show a completed project that is similar in size to the one that you are looking to finance now.
What Development Finance do you cover?
Please refer to our Product Guide and Funding Matrix.
Yes and most importantly, it should show a completed project that is similar in size to the one that you are looking to finance now.
What is the minimum 'Cash' input that is required as a deposit?
Usually 10% of project costs. Please refer to our Product Guide and Funding Matrix.
Yes and most importantly, it should show a completed project that is similar in size to the one that you are looking to finance now.
If I don't have money to deposit, are there any alternatives?
Approaching the land owner/vendor and negotiating a Deferred Purchase Agreement. Alternatively working with the landowner or an investor on a Joint Venture basis.
Do I need to offer a PG (Personal Guarantee) and in what circumstances is this normally required?
Yes; always.
Do we need to include a value for finance costs and if so, is that before or after the net profit margin is calculated?
Before the NET profit is calculated.
What is the net profit margin you can work with?
20% of the GDV.
Before the NET profit is calculated.
Can you explain IRR?
It is the percentage rate of return on an investor’s money that is invested into a JV project.
It’s the profit share divided by the term, which is divided by the level of investment, which is multiplied by 12, which is multiplied by 100.
If we own the land already or have unencumbered assets can that be used to finance a new project?
Yes
Are there any advantages of setting up SPVs (Special Purpose Vehicles) and how can that have an impact on profit/costs?
An SPV is definitely a route that should always be considered.
CONTACT US
In the first instance, we would be most pleased to receive an Overview & Appraisal
of your project.
(These can be downloaded)
OUR SERVICES
We provide a full range of services in order to facilitate an appropriate solution for you.
– Whether it’s: Senior Debt, Mezzanine or Equity.